Readers may remember back in March when the Bitcoin payment processor, Bitnet, partnered with Cardinal Commerce to add Bitcoin payment as an option to hundreds of recognizable brands.
Bitnet is a company that aims to do the same thing that some in the Bitcoin space are doing already, but better. Through creating partnerships with traditional merchant payment service providers, the company is trying to position itself in a way that it will be the default option for many who may not yet have considered plan B. By simply having to tick an option with their existing platform instead of adding in a whole new system to process Bitcoin payments, merchants are not only more likely to implement acceptance but are also more likely to go with the option that is as easy as that.
Also read: Bitnet Partners With Cardinal Commerce
Its most recent partnership is with Computop, a veteran payment services provider with such clients as Vodafone. Now companies who work with and trust Computop, which are largely European countries, will be able to implement Bitcoin payments with ease. Computop is the first European payment services provider to choose Bitnet as their Bitcoin rail. Meanwhile, there are several local competitors like BitKassa with similar ambitions to that of Coinbase: to focus on making it easy for the merchant to add their payment option, rather than to integrate with what they already have. There is more than one approach to getting a new technology behind the counter of a store. Taking the approach of integrating with what the merchants are already using seems a time-saving measure that enables Bitnet to be a true competitor in the space.
The German Computop was glad to have the new partnership in its repertoire, with CEO Ralf Gladis saying:
We recognize that the Bitcoin ecosystem is growing throughout the world and are excited to be the first European PSP to partner with Bitnet to enable merchants to accept payments in Bitcoin. Through this partnership, retailers don’t have to worry about the management of this evolving payment method. They can simply accept Bitcoin as payment from customers, and know that the process will be smooth and risk-free for them.
Bitnet handles Bitcoin payments the same way that credit card processors handle credit card transactions. When you cash out of a Visa terminal, for instance, it doesn’t offer you Visa credits. It remits a payment to your bank account for the amount you’ve earned minus anything owed to Visa. In a similar way, Bitnet users don’t have to worry about the conversion of bitcoins used to pay them in a settlement period. An advantage to using Bitnet and Bitcoin is that the merchant is repaid much faster with a traditional credit card transaction. This owes to the quick and cheap settlement for the processor, which can then be passed on to the merchant, who can also pass this on to the customer.
There may still be those who argue that Bitcoin simply “doesn’t work” as a currency or that focusing on day-to-day use like merchant adoption shouldn’t be a priority, but it is hard to argue that Bitcoin works better than credit cards or cash in many cases. With both of those, there is a period of uncertainty for the merchant, either when funds are being transported to the bank or when the buyer has a chance to cancel the transaction with their credit card company. Bitnet is one of many companies which has recognized the potential of Bitcoin and aims to make its killing by showing merchants the way.
Images from Bitnet and Shutterstock.