It has been reported the Bitcoin payment Processor BitPay.com is already conducting over $5M per month in transactions for over 2000 businesses. They recently secured an additional $2M in funding from VC’s that will be used to hire additional staff.
BitPay is quickly positioning itself to be a major player in the gateway processing of Bitcoin payments for merchants world wide. The major selling point for the service offering is the flat rate transaction fees and the ability to enable traditional and cash based business to transact in Bitcoin without holding any actual Bitcoins.
When the transaction occurs the buyers Bitcoins are transferred to the merchant and are immediately sold for $ USD at the market rate thus eliminating the perceived risks of holding a new and volatile currency such as Bitcoin.
So the question we have is will payment processing titans like Paypal sit back and let Bitpay capture early market share?