GoMining has introduced a new payments system aimed at facilitating bitcoin transactions for merchants, positioning itself as a competitor to established players like Square. The company unveiled its software development kit (SDK) and application programming interfaces (API) for the GoBTC Pay protocol, which will allow retailers to accept bitcoin for everyday purchases.
The GoBTC Pay system distinguishes itself by ensuring that merchants receive payments in bitcoin rather than fiat currency by default. This approach contrasts with competitors, including Square, which convert bitcoin transactions into local currency for the retailer. Merchants using GoMining’s system who prefer fiat will need to manage the conversion independently.
Mark Zalan, CEO of GoMining, emphasized the company’s focus on addressing the challenges associated with bitcoin payments, such as high transaction fees and slow settlement times. In a recent interview, he stated, “Our idea isn’t to squeeze bitcoin into the old fiat experience and lose what makes it bitcoin along the way. It’s to solve the real problems with BTC payments while preserving non-custody and on-chain finality.”
The GoBTC Pay system is designed to facilitate transactions directly on the Bitcoin network, utilizing GoMining’s Stratum V2 mining protocol. The average settlement time for transactions is approximately 12 hours, and merchants will incur a transaction fee of 0.2%, which will be divided equally between wallet providers and miners.
As part of its initial rollout, GoMining plans to onboard ten merchants to the GoBTC Pay platform. The company aims to attract businesses that are interested in receiving and holding bitcoin directly, reflecting a growing trend among retailers to embrace cryptocurrency as a payment method.
In parallel, Square, co-founded by Jack Dorsey, has been developing its own bitcoin payment service, which leverages the Bitcoin layer-2 network, Lightning. Square’s system allows businesses to accept bitcoin, but it defaults to converting the cryptocurrency into U.S. dollars, meaning merchants receive fiat unless they opt for bitcoin payments.
GoMining’s entry into the bitcoin payment space underscores a shift in the market, as more companies explore ways to integrate cryptocurrency into their payment systems. The competition between GoMining and established firms like Square could shape the future landscape of bitcoin transactions for retailers.
GoMining has launched a bitcoin payment system, GoBTC Pay, enabling merchants to accept bitcoin directly, contrasting with Square's fiat conversion model. This initiative aims to address key challenges in bitcoin transactions while attracting businesses interested in holding cryptocurrency.
Source: CoinDesk