The online payment provider for emerging startups has launched its initial trial of the implementation of bitcoin. Just last month the company announced that it would be processing payments in 130 different currencies. Among those currencies, the one capturing the most attention is bitcoin, which is currently accepted as a payment pilot. The company, however; plans to launch a full beta version of a bitcoin payment system in the very near future.
Stripe, who has just secured its Series C financing has some big names behind it, among those is Paypal along with Peter Thiel’s Founder Fund. Today’s announcement leads to speculation that the company is likely positioned to be a competitor to the San Francisco-based Coinbase along with the highly anticipated startup Circle, not to mention is certain to be capturing the attention of the already well-established BitPay.
Stripe’s API systems are already highly regarded among developers who favor the ability to implement credit cards into their systems without having to devote a substantial amount of resources to adapting their site’s code. Stripe’s bitcoin pilot payment system is currently allowing merchants to enroll for beta testing through their dedicated bitcoin section of their website.
Tarsnap, a secure online backup service that happens to be the originator of the scrypt key, which is designed to prevent hardware brute-force attacks is credited with the creation of the function, which is now used throughout various digital currency payment systems. Tarsnap’s founder Colin Percival went into great detail about his company’s decision to accept bitcoin as a payment method earlier today, mirrored with Stripe’s announcement. Percival explained that while many Tarsnap users are utilizing the service and its secure infrastructure, it comes to no surprise that they also would like to pay in bitcoin:
“There is a significant commonality between Tarsnap and Bitcoin — both rely crucially on strong cryptography.” he said.
Percival went on to say that he was excited to partner with Stripe in the development of their bitcoin payment system due to their preferred API systems, which he described as “simple and clean.”
Percival explains that when he receives a payment in bitcoin, Stripe’s newly implemented service then tells him the amount of bitcoin to be requested:
“Stripe then gives me the dollars I asked for (minus a small processing fee, of course).” he said.
Of the remaining questions in regard to Stripe’s bitcoin pilot payment system, it is not yet clear whether the company plans to hold bitcoin long-term, or like other companies have done, simply convert to fiat. Another remaining question is that while Stripe currently supports mobile payments through its current API systems, is whether on not the use of bitcoin will also share the same mobile functionality.