While naysayers continue to cast doubt on retailers' adoption of Bitcoin digital currency, Square's move to support Bitcoin may change all that. This week, Square partnered with CoinBase to accept bitcoins via the company's online storefront.
It seems that Square did its homework and developed a seamless bitcoin payment process for both buyers and sellers. "For sellers, the experience won't feel any different. Whether selling services or goods, sellers don't have to change a thing, except potentially expecting new trailblazing customers and more sales," Ajit Varma, a market lead for Square, wrote on the company's The Corner blog.
Retailers receive the amount of the purchased goods or services in U.S. dollars and in the amount of USD advertised to the seller's customer at the time of transaction, so the seller takes no risk on bitcoin value fluctuations, Varma wrote.
Here's how the Square Bitcoin process works: When a buyer opts to "Pay with Bitcoin," Square generates a new Bitcoin address and attaches it to the order. Next, the buyer submits his or her payment. "Buyers with a mobile Bitcoin wallet simply open their wallet and scan the QR code to load the transaction details. Those with a hosted Bitcoin wallet receive instructions for entering the required information," Varma wrote.
Given Square's widespread use by retailers in the U.S. and throughout the world, the payment company's blessing on Bitcoin may be a sign of future rapid adoption of the digital currency.
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