According to a press release, SpotOn, which provides payment processing software and services for merchants, has announced new support for cryptocurrency transactions, thanks to a partnership with Vaultbank.
This makes SpotOn the latest merchant services provider to become “crypto friendly.”
Founded in 2017, SpotOn is a California-based startup that caters to the merchant services industry. Its portfolio of products includes a platform that allows restaurants to accept and manage payments and a general-purpose cash register application that also helps manage inventory and keep track of sales reports.
Now, it hopes to make it easier to process crypto payments through this partnership with Vaultbank, which provides payment integrations between traditional financial networks and crypto assets. (SpotOn is an investor in Vaultbank, so the decision to support crypto payments is less surprising from that perspective.)
According to the press release, the new crypto support “will allow customers to pay in the currency of their choice” when they engage in transactions with merchants who use one of SpotOn’s solutions. Meanwhile, “the merchant can either convert the payment back to fiat currency or keep in cryptocurrency if desired.”
The crypto support is apparently not part of a specific new product, but instead a service that will be integrated into all of SpotOn’s existing payments solutions.
The new offering provides support for bitcoin, stellar, ripple and ether, according to the press release, which also noted that SpotOn plans, in the future, to allow cryptocurrency trades directly on its platform, as well as to build merchant loyalty programs using cryptocurrency.
A Leap Forward for Adoption or Too Little, Too Late?
Crypto naysayers might contend that SpotOn’s decision to support crypto payments comes too little, too late. The startup hardly controls enough of the merchant services market at present to make a large dent in the number of merchants that accept crypto payments. Plus, earlier efforts by other companies to enable crypto payments on a large scale have mostly turned out to either be less innovative than they at first seemed (in the case of August 2018 reports about Starbucks accepting bitcoin, for example) or to be short-lived (à la Expedia’s venture into accepting bitcoin payments).
Against this backdrop, you might wonder whether SpotOn’s decision to support crypto will really make a difference.
On the other hand, SpotOn operates in a very competitive market in which it can be hard for one solution to stand out from the crowd. By adding crypto support, the company gives itself a leg up. If the bet pays off, not only will SpotOn succeed, but the crypto waters could rise along with it in the event that more merchants leverage SpotOn’s crypto-friendly payments solutions.