Fidor Bank, BIPS Team Up for Merchant Bitcoin Payments Initiative

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27 May 2014

Bitcoin merchant processor BIPS announced several upgrades to its business this week, including a new relationship with Germany-based Fidor Bank and an integration of the bitcoin payments protocol.

Working with Fidor Bank enables the company to offer free Single Euro Payments Area (SEPA) bank settlements to its merchant customer base.

According to BIPS, this option was originally available to its customers in Denmark, though the company is focusing on the entire European market.

BIPS CEO Hans Heming said the association with Fidor is aimed at offering cheaper bitcoin payments processing to a broader merchant ecosystem:

“This is a continuation of our global rollout enabling merchants anywhere to receive payments faster and cheaper, and more bank partnerships are to come.”

Notably, Fidor was the first bank to incorporate the Ripple payments protocol into its back-end systems, a decision announced earlier this month.

Greater bank involvement

Fidor enables BIPS to capture a greater marketshare in Europe. For Fidor, the move enables the bank to tap into the technological advantages offered by digital currencies, as evidenced by its integration of the Ripple protocol.

Heming also noted that BIPS is looking to forge new banking relationships in the future as it continues to push into new markets.

Payments protocol integration

BIPS has also joined a growing number of companies that have moved to incorporate the bitcoin payments protocol, a system for enhancing bitcoin transactions.

The payments processor deployed the protocol across all of its available service. The company’s rivals, such as BitPay and Coinbase, are among those who have moved in recent months to integrate the protocol.

BIPS said that the move would make it easier for consumers to pay for goods and services using the digital currency, saying:

“The end result is beneficial for both the business and the experience of buyers resulting in more revenue to the merchant in the long run, and a much better bitcoin ecosystem.”

Merchant on the telephone image via Shutterstock