The mobile payment processor, Stripe, has announced they will no longer be using Bitcoin payments. Over the next three months, Stripe will slowly phase out its Bitcoin integration citing slow confirmation times and high fees as the reason for ending operations.
Stripe began accepting Bitcoin in 2015 in a pioneering move that gave hope to further Bitcoin integration into mainstream payment processors. At a time where credit card fees and slow transaction approvals were becoming an issue for vendors, Bitcoin seem to solve these issues with its decentralized blockchain system.
Stripe posted in their official blog:
“Our hope was that Bitcoin could become a universal, decentralized 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. This has led to Bitcoin becoming less useful for payments, however. 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.) Furthermore, fees have risen a great deal. For a regular Bitcoin transaction, a fee of tens of U.S. dollars is common, making Bitcoin transactions about as expensive as bank wires.”
That’s not to say Stripe is completely exiting the crypto market. Other altcoins like OmiseGO, Ethereum, Stellar, Bitcoin Cash, and Litecoin have been mentioned as potential candidates in the near future.