November 12, 2013
It looks like there is no stopping the Bitcoin buzz. Shopify, the popular e-commerce company announced on November 9th that it would add the virtual currency Bitcoin as an option of payment for its merchants.
Shopify was founded in 2006 by Tobias lutke (CEO), Daniel Weinand and Scott lake. The company has received $22 Mn in Series A and B funding from Bessemer venture Partners, FirstMark Capital, Felicis venture and Georgian Partners. Currently more than 60,000 retailers in over 100 different countries operate on Shopify’s platform. Some of them include Gatorade, Tesla Motors, Forbes, Encyclopedia Britannica, Amnesty International, and CrossFit among others.
Shopify says its platform provides a payment solution to accept credit cards, a professional online storefront, and the company’s POS app to power retail sales. Shopify now also accepts Bitcoin payment through Bitpay during checkout.
How does it work?
Shops that have Bitpay enabled will be able to accept Bitcoin payments from customers.
Bitpay processes the payment in the background and converts it to the sellers local currency.
The transaction fees are said to be much lower than traditional payment gateways.
Just a quick update on this: our BitPay integration is feature-complete and can be added to your store now. Due to the fact that it’s a very new feature and not something we’re ready to roll out to all stores just yet, you will need to contact me to have it enabled, and I may want to follow up with you for your feedback once you’ve been using it for a while, but it works. When active, BitPay will appear as a credit card processor in the Checkout page of your shop admin – enter your access key and you’ll be all set to go posted Brian Alkerton (Shopify Representative) on the company’s user forum. He also added that BitPay could not be used together with Authorize.net or Stripe ‘at this time’. But PayPal Express Checkout could still be used in combination with Bitpay.
Another payment processor company, Bitcredits was founded by Alexander Bourget in the year 2013 which allows any website to accept Bitcoin payments user. It has developed a Bitcoin payment system that Integrates with Shopify and works with Stripe and Paypal. This technology is currently deployed by merchants like solar product seller yetisolar.com.
LTP View: With Bitcoin trading at $365 (Nov 12th 2013), big companies such as Shopify accepting the currency will only add fuel to the fire and raise its value. Bitcoin has previously been criticised for its dependence on the currency being used by seller. But with the customer’s payment instantly being converted from Bitcoin to the local currency this will definitely benefit the Shopify store owners.