Everyone was talking about the San Francisco based mega leader merchant payment processor, Square Market known as Square, and its entry into Bitcoin this past week. Today on Coin Desk more news has been released.
There have been many questions on how the actual details of the Bitcoin process would be implemented. A representative for Square released details to Coin Desk today indicating that Square saw Bitcoin as a 'natural extension of its core value propositions':
‘We’re building tools so sellers can accept any form of payment their customers want to use. Making commerce easy means creating easy ways to exchange value for local goods.’
Bitcoin payment will be made seamlessly in the process. Sellers will receive their money into their merchant bank account in the currency that they use; the buyer will have a normal transaction process. San Francisco based Coinbase will provide the money to the seller.
The payment for processing the transaction will remain at 2.75%, the current Square fee per transaction that it charges on its credit card sales. Square has also released a new guide for buyers that takes these individuals step-by-step through the purchasing process using Bitcoin. By comparison Stripe charges 2.9% plus 30 cents per transaction. Credit card transactions will be within a 2-4% fee range but many more layers of charges for various steps through the process that make it confusing and vary in fee each month.
The buyer will enter their shipping address and email in the same manner as they do now for a purchase and will elect to ‘Pay by QR code’ or ‘Pay by Bitcoin Address’ before confirming the payment process as is consistent with current steps that users of Coinbase are familiar.
‘Bitcoin payment disputes should be resolved between the Square merchant and buyer, without Square’s intervention,’ added the Square representative to explain purchase returns. Customers can receive a refund in their original payment form. Any changes in transaction type can be handled with merchants through Square customer service.
Shopify can track the amount its customers purchased through payment with Bitcoin.
Mitchell Callahan, a developer behind the merchant-friendly point-of-sale tool PocketPOS, believes that Square is on the right track. He makes a point that is intrinsic to a merchant’s successful use of Bitcoin:
‘Making this process key is simple as merchants have a lot to worry about. Today, most people likely don’t care how Visa or debit works, they just need to make sure they can accept payment easily and it goes into their bank account.’
Another first time entry into Bitcoin is eBay. The main US site has provided a category for ‘Virtual Currency’, and allows listings for dozens of bitcoin and altcoin-related activities – including shares in mining operations. This is significant as eBay is parent to Pay Pal, which is in the wings as everyone watch for a Bitcoin entry to be accepted by Pay Pal for payment. Payment is not accepted in Bitcoin by eBay at this point.
Pay Pal will be represented April 6-8 in Las Vegas at the Transact 14 conference of merchant service providers and users. This is an event to watch for next week’s news as Bitcoin is on the agenda for a panel discussion as announced by Electronic Transfer Association CEO, Jason Oxman, in an interview with this reviewer last week.
The Chicago Sun-Times made news on Thursday as it accepts Bitcoin after a successful test run early in the year and now is the first US newspaper to accept Bitcoin payments.
San Francisco based 99designs a leader in world provider of graphic artists and a unique bid system for contracts has had a section of bids devoted to Bitcoin logos and illustrations for merchants, restaurants and online providers. There has been a significant increase with Bitcoin requests. Lauren Gard, PR Manager at the company stated for this article, 'when a new industry begins to emerge, we often find 99designs at the forefront of branding it. Bitcoin is a striking example of this.'
This past week week has displayed an important activity level of new entrants in major arenas for Bitcoin.
To find more information about Bitcoin view the list below in Author’s suggestions and the video atop this article from the WSJ today on the status of Bitcoin.
Twitter: Victoria Wagner@victoriaross888