Online Payments Provider ‘Stripe’ Beta Testing Bitcoin Support
It seems that Stripe has decided to get themselves involved in another type of currency to add on to their business, a famously known digital currency. Co-founder had hinted that stripe would be involving itself with the digital currency known as Bitcoins, and they have finally confirmed it on Thursday.
The online mobile payment startup has recently launched a bitcoin payment pilot with only a few selected customers being allowed to use it, which includes Canadian encrypted data backup service Tamsap, and has been planned to launch in a full beta trial sometime in the future. It’s set up a page where customers can register to participate.
Stripe has also been testing Automated Clearing House payments, which will allow direct transfers from bank accounts. Although the bitcoins unveiling is far more interesting news. While the number of online merchants who have accepted bitcoin payments have continued to increase as of recently, they have to go through specific cryptcurrency brokers like CoinBase. If stripes bitcoin payment manages to come out of its beta mode, this would just become another transaction option in its increasing menu of payments choices. which will be easily accessed by merely pressing into Stripe’s API.
Tarsnap has set up a good example, Its slogan is “online backups for the truly paranoid.” Utilizing cryptocurrency is a mere logical choice for their customers who go out of their way on encrypting their data. Tarsnap creator Colin Percival wrote on his blog:
“There is a significant commonality between Tarsnap and Bitcoin — both rely crucially on strong cryptography, and anecdotally it seems that many Bitcoin users rely on Tarsnap to back up their “wallets” (I have no concrete data since I can’t tell what data people are backing up) — so it’s not surprising that many Tarsnap users would like to pay with bitcoins. There is an even stronger connection to many of the “alternative cryptocoins”, since many make use of the scrypt key derivation function which I developed for securing Tarsnap’s passphrase-protected key files. I don’t have any plans to support those other cryptocoins yet, however — although if Stripe adds support for them I have no doubt that Tarsnap will make use of it.”
At the moment it seems like stripe will be converting bitcoins into a hard currency for its merchants, not handing bitcoin on over to its partners. This seems logical due to startup customers are more inclined in offering a payment flexibility to their end customers than they are in participating in bitcoin belief. And while Stripe may be joining in on the bitcoin bandwagon, its not expected to be a major part of stripes transactions.