Stripe is Ending Its Support of Bitcoin Payments

Stripe has said that by April of this year, it will no longer be supporting bitcoin payments, noting a drop in the customers that are using it as a mode of payment.

The payment platform said that it would slowly wind up support with the end date being set on the 23rd of April.

In a blog post, Stripe said that it had “long been excited about the possibilities of cryptocurrencies,” adding that the company had been the first major payments firm to support payments using bitcoin in 2014.

However, the platform said that 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.” As an outcome, bitcoin has already become “less useful for payments.”

Stripe stated: “Our hope was that bitcoin could become a universal, decentralised substrate for online transactions and help our customers enable buyers in places that had less credit card penetration or use cases where credit card fees were prohibitive.”

The company said that fees had increased by a great deal too – for a regular bitcoin transaction, a fee amounting to $10 was ordinary, which Stripe revealed made the transactions “about as expensive as bank wires.” Longer transaction times because of fluctuations in price proved to be an additional headache.

Bitcoin has brought about increasing interest over the previous year, with the cryptocurrency’s price taking off. However, that has also arrived with huge swings, and Stripe revealed that it had affected transaction times.

The firm said that it observed fewer and fewer use cases for which accepting or paying with bitcoin actually made sense.

Despite this, Tom Karlo, the product manager of Stripe, said that the company continues to be “very optimistic about cryptocurrencies overall.”

“We’re interested in what’s happening with Lightning and other proposals to enable faster payments. OmiseGO is an ambitious and clever proposal; more broadly, Ethereum continues to spawn many high-potential projects,” said Karlo.