Stripe, the California headquartered payment processor has ended support for bitcoin payments. Stripe is one of the first payment platforms to the beta launch of bitcoin payments back in 2014. The PayPal competitor opened the bitcoin payments for all of its users in the year 2015. Stripe handles payments for more than 100,000 merchants across the world. The payment processor was valued at $9 billion after a $150 million funding round in November 2016.
Slow confirmations and volatility is the reason: Stripe
“Transaction confirmation times have risen substantially; this, in turn, has led to an increase in the failure rate of transactions denominated in fiat currencies. (By the time the transaction is confirmed, fluctuations in Bitcoin price mean that it’s for the “wrong” amount),” Stripe’s product manager Tom Karlo said in a blog post.
A regular bitcoin transaction typically costs $10 or more in expenses, Karlo said, which is comparable to a bank wire. Last month the median daily transaction fee which had been in cents prior to 2017 peaked to $34. Stripe remains optimistic about cryptocurrencies and may add support to another virtual currency Stellar. Stellar or XLM is funded by Stripe and its CEO Patrick Collison is part of the advisory team. XLM, climbed to about 58.96 cents, up 21.2 percent on the day, as per CoinMarketCap. XLM is currently the 6th largest cryptocurrency by market cap.
Bitcoin turned into an asset
Stripe in the same blog post 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. Given the overall success that the Bitcoin community has achieved, it’s hard to quibble with the decisions that have been made along the way. (And we’re certainly happy to see any novel, ambitious project do so well).”
Stripe said it would wind up support for bitcoin payments immediately and will work with affected users to ensure a smooth transition before stopping all transactions on April 23, 2018.