US-based flight aggregator CheapAir, a company that’s been accepting bitcoin payments since 2013, recently published an open letter in which it asks its users for feedback on which cryptocurrency payment processor it should go with to replace Coinbase, as the latter is shutting down its Merchant Tools.
In the letter, CheapAir chief executive officer Jeff Klee notes that the company has been accepting bitcoin payments for a while and plans to keep doing so. Taking into account Coinbase is shutting down its “custodial” solution for merchants, accepting cryptos will be harder.
One of the solutions Klee proposes is using BitPay, whose merchant applications allow for Bitcoin (BTC) and Bitcoin Cash (BCH) payments. CheapAir cites having a “great experience” with the company, and claims integration is largely complete. However, it notes BitPay requires specific protocol-compliant wallets, which could be an inconvenience to users.
“We understand what Bitpay is trying to accomplish. The issues they are trying to address – delayed or incorrect payments – are real and were especially rampant back in December and January when transaction volumes spiked. On the other hand, I am not keen on the idea of asking our customers to, in many cases, do more work or change wallets just to be able to transact with us.”
While asking for feedback in the letter, the chief executive also revealed it will use the opportunity to start accepting other cryptocurrencies, namely Bitcoin Cash, Dash, and Litecoin. It’s also set to automate some processes to issue refunds faster.
In the document, the CEO revealed that CheapAir needs to convert most of the bitcoins it receives as payments to fiat, because its partners – such as hotels and airlines – don’t accept bitcoin.
CheapAir has in the past revealed accepting bitcoin affected sales in both direction, as they dropped when bitcoin’s value dropped, but surged when bitcoin hit a new all-time high. In a March 2017 press release, Jeff Klee claimed the company saw a 74 percent year-over-year increase in bitcoin sales “over the last six months.”
Coinbase’s move to shut down its Coinbase Merchant Tools in favor of Coinbase Commerce has affected other companies as well. As covered, Reddit recently stopped accepting Bitcoin payments for its Reddit Gold membership program because of the move.
The San Francisco-based wallet and exchange service recently came under fire for suspending WikiLeaks Shop’s account “without notice or explanation.” In response to Coinbase’s move, WikiLeaks revealed it will “call for a global blockade of Coinbase next week as a unfit member of the crypto community.”