BitPay Helps Merchants and Businesses Accept Crypto Payments
Major crypto payments processor Bitpay announced in October that it would accept settlements in stablecoins, a move that saw it open up crypto payments to merchants.
The company stated that with the stablecoin additions, merchants affiliated with the payments processor would now easily get their payments to settle in Gemini Dollars (GUSD) and USD Coin (USDC). The latter is a dollar-backed cryptocurrency issued by Gemini Trust that is owned by the Winklevoss twins.
Bitpay launched its bitcoin services in 2011 and has grown to provide payment services for nearly 20,000 businesses around the world. The world’s leading processor of blockchain-based payments allows these businesses to access payments made in both Bitcoin (BTC) and Bitcoin Cash (BCH).
One factor that pulls businesses to integrate with BitPay has to do with the firm’s technology that is able to instantly convert cryptocurrency payments into fiat. This enables merchants to get their money directly deposited into their bank accounts, without having to worry about price fluctuations as a result of market volatility.
According to BitPay, businesses in emerging markets like those in Asia and South America have had a slight disadvantage when it comes to accepting crypto payments—as they were exposed to volatility.
However, by accepting settlements in stablecoins, BitPay’s technology now enables merchants to accept and have their payments settled from anywhere in the world. This happens even in cases where the merchants have no access to bank accounts.
BitPay’s move to add support for GUSD and USDC is, therefore, a huge boost in advancing cryptocurrency for everyday use where a merchant in a remote village is able to sell their goods or offer services and receive payments from across the world.
It also makes it possible for individuals to hedge against price volatility, with fiat-backed coins like GUSD and USDC existing on “borderless blockchains.”
For merchants, BitPay stated that payments will be settled within 24 hours once an account has a balance of 20 GUSD or USDC.
Earlier in July, BitPay had received a virtual currency license to operate in the state of New York as a crypto business. The BitLicense allowed the company to offer its services to businesses across the state, which means merchants can now accept bitcoin or bitcoin cash in exchange for their goods and services.
The approval also meant that users from across the globe can use the payment processor’s platform to send or receive local and cross-border payments.
The firm’s Chief Compliance Officer (CCO) Sonny Singh noted at the time that businesses were likely to benefit as they would easily convert payment invoices in bitcoin or bitcoin cash. It would save time and be a lot cheaper than using traditional payment rails that rely on legacy banks.