Stripe ends Bitcoin support, saying it doesn't make sense as payment method

Payments take longer to process among the cryptocurrency mining industry that earns bitcoins for providing the computing power to unlock new coins while updating the digital ledgers of transactions.

Market watchers will recall these as much the same reasons why game marketplace Steam also pulled its support for Bitcoin back in December a year ago.

Stripe, the San Francisco, California-based company that helps thousands of businesses do financial transactions online, will soon stop accepting bitcoin payments.

Karlo said the payments processor is "very optimistic" about the market as a whole and has already identified other virtual currencies that it could potentially support in the future.

"By the time the transaction is confirmed, fluctuations in bitcoin price mean that it's for the "wrong" amount", he said. A regular bitcoin transaction typically costs $10 or more in expenses, Karlo said, which is comparable to a bank wire.

Collison brothers' Stripe calls time on volatile bitcoin, which has become more of an asset than a fluid currency. The company's management stated that in the next three months it would encourage its customers to move away from Bitcoin payments and after that it would not accept Bitcoin payments any longer.

According to Stripe product manager Tom Carlo, Bitcoin is no longer fit for goal as a currency for transactions that need to take place in a speedy manner. The bitcoin network has become a lot more widely used, and with popularity comes congestion and high fees.

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"There are fewer and fewer use cases for which accepting or paying with bitcoin makes sense", said Tom Karlo, Stripe's product manager.

However, it said over the past year or two, "as block size limits have been reached, bitcoin has evolved to become better suited to being an asset than being a means of exchange".

However, it said its decision to end support for Bitcoin payments did not mean it was giving up on cryptocurrencies all together, and sees "OmiseGO an ambitious and clever proposal; more broadly, Ethereum continues to spawn many high-potential projects".

Stripe's withdrawal of support comes on the back of bitcoin's wild ride over the previous year or so. Stripe may even add support for Stellar, in which it has a stake.

He added: "Starting today, we are winding down support for Bitcoin payments".

Payment processing giant Stripe has stopped supporting Bitcoin on its platform, according to a company blog.

  • Rita Burton