According to Jeff Klee, the CEO of CheapAir, Coinbase’s recent notification that they will suspend custodial solutions for merchants will make cryptocurrency payments more difficult. As such, the company sought another alternative which is Bitpay. However, fearing that this move may lead to inconveniences, CheapAir seeks feedback from its customers.
Since 2013, CheapAir has been accepting Bitcoin payments for flight and hotel bookings. After the announcement, the firm seeks to provide its customers better solutions and more digital payment options.
On March 5th, Coinbase announced the launch of Coinbase commerce. A new product that was specifically made for merchants. As expected, the response from merchants was overwhelming. However, the firm added that they will be retiring their merchant tools product to put more focus on making the new product the best possible solution for online traders.
Following this announcement, Klee declared that his company will begin accepting additional cryptocurrencies such as bitcoin cash and litecoin. Also, the company will automate some processes, establish a dedicated customer service email box and phone line and even partner with Bitpay.
Additionally, through the open letter, the company stated that they had a great experience with Bitpay and the integration is ready. However, the primary concern is that Bitpay does not support non-payment wallets (wallets that aren’t BIP-70 complaint). As such, the customers are required to get a compatible wallet and use it as an intermediate stage for the cryptocurrency payments. These are the reasons why CheapAir seeks feedback from its customers.
Through the letter, Klee asks the customers a number of questions which include, whether they transact with other Bitpay merchants, whether the BIP-70 requirement is a bit reasonable or too onerous, or if the new development may make them transact less with the firm.
What are your thoughts on Coinbase’s decision to suspend merchant tools products? How will this affect cryptocurrency adaptation in the retail industry?
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