GoMining challenges Jack Dorsey's Square with payments system designed around bitcoin

GoMining launches bitcoin payment system. GoMining, a bitcoin mining company, is making it easier for companies to accept bitcoin payments, bringing it into competition with companies including Block's Square. The company's new payment system, called GoBTC Pay, enables retailers to access its protocol and accept bitcoin payments settled directly on the Bitcoin network.

The system was unveiled on Friday, and the company plans to recruit an initial 10 merchants as part of the rollout. GoBTC Pay was built to enable bitcoin payments settled directly on the Bitcoin network, using GoMining's Stratum V2 mining protocol, with an average settlement time of around 12 hours. Merchants will pay 0.2% in transaction fees, shared 50-50 between wallet providers and miners.

GoMining's system differs from incumbents in that the entire transaction is completed in bitcoin. Many competitors, including Square, allow customers to pay in bitcoin while delivering fiat currency to the retailer. GoMining retailers who want fiat will need to handle the conversion themselves. According to Mark Zalan, CEO of GoMining, "Our idea isn't to squeeze bitcoin into the old fiat experience and lose what makes it bitcoin along the way. It's to solve the real problems with BTC payments - the high and variable fees, the slow and unpredictable settlement, while preserving non-custody and onchain finality."

The launch of GoBTC Pay comes as the crypto market is experiencing a downturn. In May, combined exchange volumes fell 3.45% to $4.41T, the lowest since September 2024. However, RWA perpetual futures volumes rose 10.4% against the trend, hitting a new all-time high. This suggests that despite the market downturn, there is still interest in crypto and bitcoin payments.

Block, the fintech company co-founded by Jack Dorsey, has been rolling out a bitcoin payments service of its own over the past year. The system allows businesses to accept BTC using the Bitcoin layer-2 network Lightning. Square's service converts the bitcoin amount into U.S. dollars by default, meaning the receiving merchant receives payment in BTC only if it chooses to. GoMining appears to be betting that more businesses will want to receive and retain bitcoin directly.

The implications of GoMining's new payment system are significant. If successful, it could lead to increased adoption of bitcoin payments and a shift away from traditional fiat currency. It could also lead to increased competition in the payments industry, which could drive down fees and improve services for merchants and consumers.

However, there are also challenges ahead for GoMining. The company will need to convince merchants to adopt its system and handle the conversion to fiat currency themselves. It will also need to compete with established players like Square and Block, which have significant resources and expertise in the payments industry.

In an interview over Telegram, Mark Zalan outlined the company's plans for the rollout of GoBTC Pay. "We're starting with a small group of merchants and will be working closely with them to ensure a smooth rollout," he said. "We're confident that our system will provide a better experience for both merchants and consumers, and we're excited to see the impact it will have on the market."

The launch of GoBTC Pay is also significant for the broader crypto market. It shows that despite the current downturn, there is still innovation and development happening in the space. It also highlights the potential for bitcoin to be used as a form of payment, rather than just a store of value.

As the payments industry continues to evolve, it will be interesting to see how GoMining's new system is received by merchants and consumers. Will it gain traction and lead to increased adoption of bitcoin payments, or will it struggle to compete with established players? Only time will tell, but one thing is certain - the launch of GoBTC Pay is a significant development in the crypto space, and it will be worth watching closely in the coming months.

In conclusion, GoMining's new payment system has the potential to disrupt the payments industry and increase adoption of bitcoin payments. With its focus on preserving non-custody and onchain finality, it offers a unique solution for merchants and consumers. As the crypto market continues to evolve, it will be exciting to see how GoMining's system is received and what impact it will have on the industry.