For several years now, industry experts have been mulling over the potential for bitcoin as a global currency to power cross-border payments. The challenge of foreign exchange and varying bank regulations has led payment innovators to focus on how to easily and legally land payments in the hands of someone in another country.
Reports published Tuesday (June 23) say digital wallet provider Snapcard, which processes bitcoin payments, has come up with a solution to use bitcoin for cross-border transactions. The company announced the launch of its MassPay platform and API Tuesday, which facilitates cross-border payments between businesses regardless of the size of transaction. Users need only an email address, phone number or bitcoin address to make a payment.
According to reports, the new MassPay solution can be especially helpful for businesses because Snapcard will absorb the risk associated with the digital currency.
The service allows businesses to integrate the MassPay API to receive credits to its Snapcard account in its local currency. When the company initiates a payout, MassPay sends bitcoin to the recipient, who can then keep the bitcoin or withdraw it in local currency for a 0.25 percent fee.
Snapcard said that the withdrawal can take between three hours and three days depending on the currency requested, but that in most cases the funds can head straight to the payee’s bank account. The service is presently available in 26 nations, with Snapcard planning to add up to 30 new jurisdictions by the end of 2015.
The company envisions four sectors that could especially benefit from the new tool: digital content sales, ad networks, marketplaces and the mobile gaming industry. Digital content companies, for example, will be able to pay their foreign employees and freelancers.
In addition to the rollout of its new platform, Snapcard also announced a new partnership with rewards-as-a-service provider Tango Card, a collaboration that will allow payees to receive their bitcoin rewards.
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