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CoverStory
Blockchain payment platform GoCoin recently merged
Alternatives to bitcoin with mobile wallet and loyalty program provider Ziftr
to increase visibility for bitcoin by adding the loyalty
element.
Following the launch of bitcoin, the world's frst decentralized cur-
rency system, more than 150 cryptocurrencies have emerged. Collec- Online merchant adoption
tively referred to as altcoins, following are some of the more popular Initially the novelty of bitcoin was enough to attract
alternatives to bitcoin in use today. customers to merchants, but in developed nations it has
become a consumer-preferred, cash-like push payment.
Litecoin: Created by MIT graduate and former Google Inc.
engineer Charlie Lee, litecoin launched in 2011 and is now "Now there are customers who have bitcoin," said George
Peabody, Partner at Glenbrook Partners LLC. "Those
considered the second largest altcoin in the world.
customers who have bitcoin tend to be an attractive
Peercoin (aka PPCoin, P2PCoin): Created by Sunny King (a demographic. For one, they tend to be well heeled. They
pseudonym) and Scott Nadal, peercoin launched in 2012 to tend to be tech forward. For certain kinds of merchants it
address security and resource-intensive functions. makes sense to accept it."
Dogecoin: Created by programmer Billy Markus and Adobe CardinalCommerce, which offers a global cloud-based
Systems Inc. senior manager Jackson Palmer, dogecoin platform for card-not-present e-commerce merchants,
launched in 2013 as an accessible currency for small transac- recently teamed with Bitnet to integrate bitcoin payments.
tions. Within the first months, several trends started to emerge.
"We have about four categories of merchants that use it,"
Dash (formerly Darkcoin): Created by software developer said Alasdair Rambaud, Senior Vice President of Merchant
and fnancial adviser Evan Dufeld, darkcoin launched in 2014 Services at CardinalCommerce."
with enhanced anonymity via a mastercode network.
The first category comprises travel merchants, who
Primecoin: Also created by peercoin developer Sunny King, discovered they could capture early bitcoin adopters by
primecoin launched in 2014 to deliver stronger security and offering them high-end travel incentives. "The companies
speed the verifcation process. that do it have told us that they're mostly customers they've
never seen before," Rambaud noted.
High-end retailers, the second category, also saw a spike
"What we have done is create a service layer on top of in online sales after introducing bitcoin payments. "I think
bitcoin through a single API connection to our platform," you're going to see a lot of brick-and-click merchants
McDonnell said. "We manage all aspects of digital currency accept bitcoin, because they want to capture that excess
acceptance for merchants. They get a guaranteed payout inventory," Rambaud said. "What we're seeing and will
at a predetermined amount of time, at a guaranteed price, continue to see is big-box retail and luxury retail" going
with no chargeback, in a currency of their choice for a after bitcoin spenders.
processing fee that is a fraction of what they're paying for
card-not-present transactions." The final two categories, online gaming and adult
entertainment, coincided with the anonymous side of
To facilitate bitcoin payments in retail spaces, an Internet bitcoin, where privacy is valued. "The four retail categories
protocol-enabled, screen-based POS terminal is required. are definitely catering to two different types of people,
"It needs to be capable of initiating an API call to us and the anonymous type and those who have created excess
then receiving a graphical image of a QR code," McDonnell wealth through early entry into bitcoin," Rambaud said.
said. "The consumer scans that QR code with their
smartphone app, and embedded in that QR code is all the Vending customers
information that their app needs to push the payment over Bitcoin ATMs don't connect with payment networks to
the bitcoin network to Bitnet." validate bank funds availability, but they do resemble
ATMs physically and come in a variety of sizes to
Another company working to simplify bitcoin integration accommodate location type. While an estimated 2.2
is Gem. "Gem is powering the infrastructure for any million cash ATMs are in use globally, fewer than 500
developer anywhere in the world to easily begin building bitcoin ATMs have been deployed. Five manufacturers –
on blockchain technlology," said Ken Miller Chief Lamassu, GenesisCoin, BitAccess, Skyhook and General
Operating Officer at Gem. "We are working with all Bytes – dominate the bitcoin ATM market, according to
types of payment and funds processors. By integrating recent reports.
our wallet functionality through our API, it gives them
the ability to store or move digital currencies within their Also, bitcoin machines essentially come in two flavors:
apps that their end businesses and individuals use." one-way and two-way. Peter Klamka, President of Bitcoin
40
Blockchain payment platform GoCoin recently merged
Alternatives to bitcoin with mobile wallet and loyalty program provider Ziftr
to increase visibility for bitcoin by adding the loyalty
element.
Following the launch of bitcoin, the world's frst decentralized cur-
rency system, more than 150 cryptocurrencies have emerged. Collec- Online merchant adoption
tively referred to as altcoins, following are some of the more popular Initially the novelty of bitcoin was enough to attract
alternatives to bitcoin in use today. customers to merchants, but in developed nations it has
become a consumer-preferred, cash-like push payment.
Litecoin: Created by MIT graduate and former Google Inc.
engineer Charlie Lee, litecoin launched in 2011 and is now "Now there are customers who have bitcoin," said George
Peabody, Partner at Glenbrook Partners LLC. "Those
considered the second largest altcoin in the world.
customers who have bitcoin tend to be an attractive
Peercoin (aka PPCoin, P2PCoin): Created by Sunny King (a demographic. For one, they tend to be well heeled. They
pseudonym) and Scott Nadal, peercoin launched in 2012 to tend to be tech forward. For certain kinds of merchants it
address security and resource-intensive functions. makes sense to accept it."
Dogecoin: Created by programmer Billy Markus and Adobe CardinalCommerce, which offers a global cloud-based
Systems Inc. senior manager Jackson Palmer, dogecoin platform for card-not-present e-commerce merchants,
launched in 2013 as an accessible currency for small transac- recently teamed with Bitnet to integrate bitcoin payments.
tions. Within the first months, several trends started to emerge.
"We have about four categories of merchants that use it,"
Dash (formerly Darkcoin): Created by software developer said Alasdair Rambaud, Senior Vice President of Merchant
and fnancial adviser Evan Dufeld, darkcoin launched in 2014 Services at CardinalCommerce."
with enhanced anonymity via a mastercode network.
The first category comprises travel merchants, who
Primecoin: Also created by peercoin developer Sunny King, discovered they could capture early bitcoin adopters by
primecoin launched in 2014 to deliver stronger security and offering them high-end travel incentives. "The companies
speed the verifcation process. that do it have told us that they're mostly customers they've
never seen before," Rambaud noted.
High-end retailers, the second category, also saw a spike
"What we have done is create a service layer on top of in online sales after introducing bitcoin payments. "I think
bitcoin through a single API connection to our platform," you're going to see a lot of brick-and-click merchants
McDonnell said. "We manage all aspects of digital currency accept bitcoin, because they want to capture that excess
acceptance for merchants. They get a guaranteed payout inventory," Rambaud said. "What we're seeing and will
at a predetermined amount of time, at a guaranteed price, continue to see is big-box retail and luxury retail" going
with no chargeback, in a currency of their choice for a after bitcoin spenders.
processing fee that is a fraction of what they're paying for
card-not-present transactions." The final two categories, online gaming and adult
entertainment, coincided with the anonymous side of
To facilitate bitcoin payments in retail spaces, an Internet bitcoin, where privacy is valued. "The four retail categories
protocol-enabled, screen-based POS terminal is required. are definitely catering to two different types of people,
"It needs to be capable of initiating an API call to us and the anonymous type and those who have created excess
then receiving a graphical image of a QR code," McDonnell wealth through early entry into bitcoin," Rambaud said.
said. "The consumer scans that QR code with their
smartphone app, and embedded in that QR code is all the Vending customers
information that their app needs to push the payment over Bitcoin ATMs don't connect with payment networks to
the bitcoin network to Bitnet." validate bank funds availability, but they do resemble
ATMs physically and come in a variety of sizes to
Another company working to simplify bitcoin integration accommodate location type. While an estimated 2.2
is Gem. "Gem is powering the infrastructure for any million cash ATMs are in use globally, fewer than 500
developer anywhere in the world to easily begin building bitcoin ATMs have been deployed. Five manufacturers –
on blockchain technlology," said Ken Miller Chief Lamassu, GenesisCoin, BitAccess, Skyhook and General
Operating Officer at Gem. "We are working with all Bytes – dominate the bitcoin ATM market, according to
types of payment and funds processors. By integrating recent reports.
our wallet functionality through our API, it gives them
the ability to store or move digital currencies within their Also, bitcoin machines essentially come in two flavors:
apps that their end businesses and individuals use." one-way and two-way. Peter Klamka, President of Bitcoin
40
