Major Payment Processors in Favor of Block Size Increase; Coinkite and BitPagos Prefer BIP 100

Both of Bitcoin’s major payment processors — BitPay and Coinbase — have publicly defended an increase in the block size limit as proposed by Bitcoin core developer Gavin Andresen.

While many payment processors refrained from commenting directly to CoinTelegraph on the block size debate, including BitPay and Coinbase, the available information suggests that the industry leaders will back an increase.

Two payment processors that did respond to our inquiry, Coinkite and BitPagos, have indicated they support alternative solutions, such as core developer Jeff Garzik’s BIP 100.

Big Two

Although precise data on the bitcoin payments industry is scarcely available, it is commonly assumed that BitPay and Coinbase dominate a lion’s share of the market. Both companies have attracted VC investments worth tens of million dollars, while the two claim to have enrolled a combined 100,000 merchants, including names as Microsoft, Dell, PayPal and more.

Bitcoin’s first and presumably biggest payment processor, BitPay, has expressed support for Andresen’s proposed block size limit increase through a tweet by its CEO Stephen Pair. Notably, Pair added that the increase to 20 MB should optimistically “be the last and only time block size needs to increase.”