With BitPay, companies can avoid worrying about “chargeback fraud and identity theft”. Customers can pay without delivering confidential personal information, and reimbursements are made through the merchant with no chargebacks.
This Monday, the famous bitcoin payment processor, BitPay, informed that from this October 15, it will settle global payments with stable cryptocurrencies, known as stablecoins. This announcement was made through a press release. The company explained traders can now choose to receive a settlement in two fully guaranteed and regulated credit currencies: Circle’s “USD Coin” (USDC) and the Gemini “Gemini Dollar” exchange (GUSD); both currencies linked to US dollar. The co-founder and Chief Executive of the company, Stephen Pair, said: “The introduction of stable cryptocurrencies, USDC and GUSD offers BitPay customers a new alternative in addition to Bitcoin and Bitcoin Cash, by offering the option of stable currency”. According to the official statement, the objective of this new service is to provide businesses with a “non-volatile” settlement solution which will not depend on traditional bank transfers. The system will allow the business to take its profits in Bitcoin, Bitcoin Cash and, in case of a sudden market movement; traders can change their earnings to stable cryptocurrencies (USDC or GUSD). In this way, losses will be avoided and it will not be necessary to wait for a bank to make the exchange effective.
This option will be available on a 24/7 basis. That is another advantage compared to those of traditional banks. The stores only require a portfolio with support for tokens ERC20, which must be added in the control panel of Bitpay in order to enable the reception of USDC and GUSD in Bitpay.
Why stable cryptocurrencies Stable cryptocurrencies are cryptoactive designed to maintain a constant price. Its value is linked to a stable fiduciary currency, such as US dollar or products such as gold. Gemini Dollar stable cryptocurrency is one of the two authorized by the New York State Department of Financial Services (NYDFS). This institution accepted Gemini Dollar on September 10. The most dominant stable cryptocurrency is Tether (USDT), which is ranked eight by market volume. However, it was not included as one option for Bitpay settlements. Paxos Standard (PAX) is another stable cryptocurrency which is out of Bitpay list. This is the other stablecoin regulated by the NYDFS. Since its launch, its performance has been even better than GUSD or USDC. It is currently ranked 137th by trading volume in the CoinMarketCap ranking.
Bitpay’s new advantages • With BitPay, businesses can accept payments in eight fiat currencies (direct bank deposits in 38 countries) and four cryptocurrencies (deposits direct banking in 240 countries) for a fixed charge of 1%. Transactions with credit cards can cost up to 3%.• With BitPay, companies can “receive payments in any amount, from anywhere in the world and from any computer or mobile device”.• With BitPay, companies can avoid worrying about “chargeback fraud and identity theft”. Also, customers “can pay without delivering confidential personal information, and reimbursements are made through the merchant, with no chargebacks”. BitPay assures traders around the world who use BitPay that they can accept Bitcoin (BTC) and Bitcoin Cash (BCH), and “now have the additional option of receiving their settlement in a cryptocurrency equivalent to US dollars”.
By María Rodríguez