Blockchain payments startup Bitpay has successfully raised $40 million in a Series B round with participation by venture capital firms Menlo Ventures and Aquiline Technology Growth.
Bitpay, which processes bitcoin and bitcoin cash payments for merchants, announced that it had launched a $30 million Series B funding round last December, but decided to expand the round before it had concluded. ATG led the round, which expanded to $40 million due to “high demand,” Bitpay CEO Stephen Pair told digital news organization Recode on Monday.
Tyler Sosin, a partner who is spearheading Menlo’s crypto work, told Recode that the firm has been considering investments in various blockchain startups for the past 18 months, but was dissatisfied with its options until it found Bitpay. He did not disclose the sum Menlo contributed to the round.
Sosin said Menlo anticipates that the blockchain will be an essential part of future payment technologies, though the firm has not purchased any cryptocurrencies outright or participated in an initial coin offering (ICO).
According to Sosin, the firm decided to invest in Bitpay because as a payment platform, it would not require them to wager on the success of a particular cryptocurrency.
Bitpay may not be Menlo’s only foray into the crypto industry. Sosin suggested that the firm, whose portfolio also includes investments in Uber, Tumblr and Roku, intends to increase its presence in the space, saying “it’s early, early days. We imagine there will be some very big companies.”
Bitpay indicated in December that it intends to use the Series B funds to expand its operations in Asia, in addition to allocating funds to new engineering hires, regulatory licensing and technology acquisitions. At that time, it also claimed to have processed nearly $2 billion in annualized payment volumes.
What is BitPay?
Bitpay.com is one of the largest payment processors specializing in allowing merchants to accept bitcoins for their products and services. If you are an online merchant who wishes to accept bitcoins as a form of payment, Bitpay.com can help you set up your gateway and begin processing digital currency transactions.
Bitpay.com offers several advantages including flat-rate pricing, guaranteed exchange rates, daily bank settlements, and an option for importing bitcoin sales into Quick Books. Bitpay.com is a complete merchant solution that provides reputable and affordable service.
How merchants are using Bitpay.com
Bitcoins can be accepted for a variety of products and services, as well as for donations to certain organizations. Here are just a few ways that merchants are using Bitpay.com:
- To sell digital content. Mobile marketing and digital downloads are very popular in the current economy. Bitpay.com makes it easy for merchants to accept bitcoins for their original digital content. No limits are imposed on digital merchants who want to monetize mobile users.
- To sell travel and tourism services. A vast array of user-friendly tools will allow Bitpay users to accept bitcoins in person and online. Merchants can attract international customers and accept payments from any country.
- Accept charitable donations. Adding Bitcoin to the available donation options can increase charities’ contributions.
- Accept contributions to political campaigns. Bitpay offers collection services that are in full compliance with the Campaign Finance Laws and allow contributors to make small donations.
The products for which bitcoins can be accepted are limited only by the imagination of the merchant.
How do merchants get paid by Bitpay.com?
Bitpay.com prefers to pay merchants one payment each day for their bitcoin transactions. This clears the merchant’s bitcoin balance and simplifies bookkeeping. It also discourages hackers from trying to steal payment data. A merchant can choose to have their bitcoin balance transferred to their bank account once per business day, or can elect to receive a payment to their Bitcoin address once per calendar day.
Bitpay is available in every country, which means that merchants can set their prices in over 150 different currencies. This greatly increases a merchant’s ability to market to an international audience.
How much does Bitpay.com cost?
Bitpay is the most affordable bitcoin processor around with a variety of service options for merchants to choose from, most of which include zero transaction fees and zero hidden charges. The flat-rate pricing model offered by Bitpay is many times more affordable than Square ore similar payment processors.
Merchants can choose from a Starter Account which has no monthly fee but does include a 1% transaction fee, or Professional, Business, or Enterprise accounts which are tailored to businesses processing an increasing number of transactions. Professional accounts and higher offer 0% transaction fees, and the Enterprise account will also accommodate VPN access.
Three reasons to choose Bitpay.com
Choosing Bitpay as a bitcoin processor offers three substantial advantages to merchants:
- The ability to monetize emerging markets. For those merchants who are serving international customers, Bitpay allows payment instructions to be presented in English and ten additional languages.
- Elimination of price volatility. The bitcoin market can be very volatile, bit Bitpay guarantees the exchange rate during checkout by using their exclusive Bitcoin Best Bid (BBB) rate calculation which factors in real-time quotes from multiple Bitcoin exchanges.
- Easy integration. Merchants can set up their payment gateways quickly, and Bitpay provides 20 different shopping cart plugins that make integration simple no matter which cart a merchant uses. Information from bitcoin sales can be exported to Quick Books accounting software to make record keeping accurate and simple.
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