Verifone to enable crypto payments at major retailers through BitPay

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Crypto payments are becoming more and more popular as Bitcoin (BTC) and other digital assets continue to become mainstream. This has become the case for both cryptocurrency holders and non-cryptocurrency owners who are primarily interested in the concept of using cryptocurrencies for payments.

Recent data revealed that 93% of crypto users surveyed would consider making crypto purchases. The report further found that 59% of consumers who don’t own crypto would be interested in using it to make purchases in the future.

As such, it should come as no surprise that major payment providers like Mastercard have stepped up their efforts to support crypto payments in the future. In addition, social media giants such as Twitter are also striving to enable cryptocurrency payments through mechanisms such as tipping.

Verifone launches crypto payments

It’s important to point out that online merchants and physical retailers need to start accepting crypto payments to ensure their adoption by the general public. According to Fundera’s findings, only around 2,300 companies in the United States were accepting Bitcoin payments at the end of 2020.

In order to move this forward, Verifone, one of the world’s largest point-of-sale providers, today announced that the expansion of BitPays blockchain payment technology will enable cryptocurrency transactions.

Mike Pulli, CEO of Verifone, told Cointelegraph that by the end of this year, merchants using the Verifones in-store platforms and eCommerce Cloud Services in the United States will be able to accept cryptocurrency payments. Pulli added that Verifone has recently researched alternative payment methods and will now support crypto transactions due to the growing interest of the general public in cryptocurrency:

We believe that the crypto available on our terminals will open up more options and opportunities for consumers, which Verifone aims to do. This opens up a currency that has never been seen before on a terminal and we want to be at the forefront of this trend.

While Pulli has not been able to reveal which online and physical merchants will start supporting crypto payments, the company’s reach is significant and therefore will likely impact the adoption of crypto payments. To put that into perspective, Verifone operates 36 million point of sale, or POS, devices and has processed over 10 billion transactions, generating more than $ 350 billion in volume per year.

Stephen Pair, CEO of BitPay, told Cointelegraph that while BitPay regularly allows merchants to process crypto transactions, Verifone is by far the biggest partnership yet: Verifone customers request crypto payments. This has become the case because there are millions of crypto users today who have blockchain wallets on their phones that they wish to mine.

Source: Verified

Speaking of Pairs, Verifone’s head of alternative payment methods, Jeremy Belostock, told Cointelegraph the company is seeing a major shift in consumer behavior for reasons such as the COVID-19 pandemic. Specifically, Belostock noted that, more than ever, consumers trust mobile wallets, seeing them as quick and easy payment methods:

There has been a change from having a credit card to having a trusted mobile app that consumers want to use to spend. We are exploiting this market to generalize crypto. As easy as using Venmo or PayPal, but for crypto transactions

Belostock explained that Verifones’ advanced payment engine designed to support crypto transactions works the same as its terminals that accept Venmo or PayPal payments. The only difference is that physical and online traders will now be able to accept Bitcoin, Ethereum (ETH), Dogecoin (DOGE), Bitcoin Cash (BCH), Wrapped Bitcoin (WBTC), Litecoin (LTC), and five indexed USD. stablecoins Gemini dollar (GUSD), USD Coin (USDC), Pax Dollar (USDP), Maker DAO (DAI) and Binance USD (BUSD).

Additionally, the solution will initially support major wallets including Blockchain.com, BRD, Metamask, and BitPay. Belostock further mentioned that when paying with crypto through a Verifone device, consumers will go through a simple process, similar to using a credit card:

When a consumer goes to pay in a physical store, they will see the amount owed and the screen will give them the different options for which crypto wallet to use. They will choose a wallet and a QR code will appear. They will then scan the QR code directly from their blockchain wallet and choose the cryptocurrency they want to pay with.

From a merchant perspective, Pulli explained that accepting encrypted payments through Verifone is like accepting another form of tendering, noting that there is no additional risk involved: all that is required. of our merchants is a software update since they are connected to our cloud platform. . Even if consumers send cryptos from their wallets, traders will only see their local currency.

This is an important point, as Belostock shared that many Verifones merchants have expressed concern about the exposure to crypto volatility. The big question here is whether there is a risk, he noted. Yet unlike other solutions that allow traders to decide whether or not to accept crypto after transactions have been settled, Verifones traders must accept US dollar. This is mainly due to the payback aspect, but it also protects against volatility, Belostock said. He added that in the event of a refund, consumers will get their crypto back for the amount of their original purchase.

Will mainstream adoption follow?

While it’s clear crypto payments are on the rise, some concerns remain that could hamper mainstream adoption in the United States.

On September 24, for example, the People’s Bank of China, or PBoC, issued guidelines to clamp down on crypto activity across the country. These measures are aimed at cutting off payment channels, getting rid of relevant websites and mobile applications in accordance with the law.

While this may have an impact on the reach of cryptos, Bill Bielke, chief marketing officer of BitPays, told Cointelegraph that it was too early to say what effect China’s measures might have in the United States or around the world. : We see positive growth and huge potential with the announcement of Verifone today in the United States as another way for traders to accept Bitcoin and 10 other cryptos, as well as for consumers who have cryptos and looking to spend.

Related: Adapt Or Die: Payments Giants Partner With Crypto Firms To Provide Security

In addition to the recent crypto ban in China, consumers and traders could face a number of challenges when it comes to spending cryptocurrency. For example, accounting challenges tend to be a major concern for users based in the United States. Still, Pair mentioned that no tax implications will be present if users convert crypto into stablecoins that can be spent on Verifone devices. He further pointed out that companies offering crypto conversion software like TaxBit help users report gains and losses directly from their wallets.

Additionally, accessibility could also create challenges for merchants and consumers, as some crypto payment solutions require a number of steps for purchases to be made. For example, Belostock mentioned that Verifone has seen competitive solutions where crypto has to be transferred from multiple wallets and then converted into a gift card to use for payments. While it could be, he noted that the product that Verifone and BitPay have built should prove to be simple and intuitive.

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