![]() There are different reasons these over- or under-payments happen, Pair explained. “That led to us implementing the BitPay Protocol,” which allows BitPay servers to “tell the wallet exactly how to formulate that transaction.” “We had to figure out how to make sure that those transactions worked,” he said. In the aftermath of bitcoin’s first big bull market in 2017, the rising congestion and fees were causing a lot of problems, Pair said. Read more: BitPay Sees Consumer Crypto Payments Growing Beyond Bitcoin There’s also the fact that not all wallets accept all the same cryptocurrencies. “We try really hard to give the user clear instructions … so that whatever idiosyncrasies that particular app might have, we can explain to the user how to do it correctly,” he added.Ī second problem is that the transaction fees required for cryptocurrency transactions are every bit as volatile as the price of the bitcoin, ether or other digital asset used for payment - and in some cases, more so if the blockchain is overtaxed, which is not uncommon with bitcoin and Ethereum. So, getting it wrong is fairly easy - particularly as the open wallet standard’s tech specs don’t include the ability “to specify the exact fee that should go on the transaction,” Pair said, adding that some wallets get as much as 10% of transactions wrong. “Some deducted from the amount you’re sending, some added into the amount you’re sending,” he said. For one thing, wallets can have very different ways of calculating those network fees, and they aren’t always compatible. “In most wallets, you can enter the amount you’re going to pay, and that opens up the opportunity to get it wrong,” Pair said. The BitPay Protocol is aimed at several problems that center on transaction fees, Pair told PYMNTS’ Karen Webster. See also: Sling TV to Accept Crypto Payments for Subscriptions Through BitPay It is compatible with tens of millions of crypto wallets including MetaMask, BitPay and, among others. This includes a better JSON-based payment protocol interface, significantly reducing the wallet development effort. The BitPay Protocol is used in the company’s own BitPay Wallet, as well as 100+ third-party wallets, which can offer users a better payment experience. “It’s not great if their first experience is their wallet underpays the invoice or it overpays the invoice, and now they have to get a refund or redo the transaction,” said BitPay CEO Stephen Pair. That’s important in an industry in which transactions cannot be reversed after being written onto an uneditable and unalterable blockchain, and in which the miner fees paid for transactions can be unpredictable. The BitPay Protocol brings the more accurate payment technology it had developed for its own crypto wallet to an industry struggling with an unacceptably high industry-wide exception rate of as much as 10%. Now, more than 100 wallets ensure the best customer payment experience. When cryptocurrency payments processor BitPay set out to build a better customer payment experience for crypto wallets, one of the features included was the ability to send the transaction data back to its servers to ensure payment details were accurate and sufficient fees were applied to eliminate payment exceptions.
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