Stripe plans to abandon support for Bitcoin payments this week, after users seeing the virtual currency is more as an asset, rather than something to make payments with. The company also added that only a few online merchants are willing to accept cryptocurrency.
The company started accepting bitcoin payments back in 2014, but it has become less useful as a method of payment. Stripe also pointed to an increase in its transaction confirmation times, transaction failure rates, and additional fees.
At the time, Stripe was hopeful that Bitcoin will become a new way for people with low credit card penetration to do transactions online with low credit card fees.
“Empirically, there are fewer and fewer use cases for which accepting or paying with bitcoin makes sense,” Stripe Spokesperson.
Stripe Isn’t The First to Let Go of The Pseudo Currency
There are other companies who have decided to drop Bitcoin support for the past couple of months. Valve has stopped accepting bitcoin a month ago, citing the same transaction charges and increased volatility caused them to abandon the cryptocurrency.
There are also several governments globally that have banned bitcoin from their respective countries. According to Engadget, bitcoin received at least $19,000 a month ago but dropped below $10,000 last week alone. Coinbase wrote that it’s currently valued at $11,070.01.
According to BBC, Stripe will be slowly pulling out its support for Bitcoin immediately and will cease all transactions by April 23. Although the company expressed that it’s not giving up on cryptocurrencies altogether and that bitcoin may become a viable method of payment again in the years to come.
“We’re interested in what’s happening with Lightning and other proposals to enable faster payments”Tom Karlo, Stripe, Product Manager
The company will continue to monitor the ecosystem and look for alternative ways to help their customers by adding support for cryptocurrencies and creating additional protocols in the future.
Connect With Us And Other Small Business Owners
Please head over to our Facebook Group for Small Business Sellers and interact with other small business owners.