Bitcoin payment processor Coinbase has partnered with traditional payment service provided Balanced to introduce recurring payments to BTC transactions.
While the notion of recurring payments may go against parts of the ideology surrounding the cryptocurrency, the idea of being able to offer subscriptions or one click payments is something merchants utilize often to offer a seamless and enhanced shopper experience.
“This will end up making Bitcoin a lot more mainstream because you’re making the experience of purchasing with Bitcoin as close to the understood e-commerce experience as possible,” says Matin Tamizi, co-founder and CEO of Balanced, which provides technology for marketplaces.
The partnership between Coinbase and Balanced will work of a token system. User data including Coinbase-wallet information will be stored on Balanced PCI-Level 1 compliant vault, alongside other valuable shopper information, such as debit and credit card data. As with similar card based services users will have the option to cease automated payments at any given time.
“Our focus has been, from the beginning, what we can do to enable more commerce. There are a growing number of people that want to be able to spend the bitcoins they have,” says Tamizi.
FXPRIMUS Celebrates 10-Year Anniversary with a Grand Gala in Kuala LumpurGo to article >>
A large number of chargebacks and shopper disputes originate from subscriptions and recurring charges. As Bitcoin transactions cannot be charged-back or disputed, it will be interesting to see how the firms plan to handle such customer complaints.
The first platform to use the new service will be Gittip, a company which allows users to set up recurring payments for groups such as charities. The new partnership will raise Bitcoin acceptance to over 450 online Balanced marketplaces.
“For Gittip specifically there’s been a lot of demand from people publicly requesting [Bitcoin],” added Tamizi.
Apart from the partnership with Balanced, Coinbase is also the payment entity behinds Overstock.com’s new Bitcoin venture.