34 Bytes Creates A Bitcoin-Based POS Terminal
34 Bytes says they are a company who is “pioneering cryptocurrency payment solutions for physical stores.” It was founded by Stephen Karlsgodt and he hopes adoption can spread quicker with the use of these types of machines for brick-and-mortar merchants.
The startup says its new POS solution keeps the needs of both customers and merchant in mind when it comes to convenience. The company explains via their website:
We are designing and deploying bitcoin POS solutions to brick-and-mortar merchants and businesses. Our goal is to vastly improve the experience of in-person bitcoin payments, for both the merchant and the customer.
The bitcoin point of sale terminal doesn’t need a smartphone, tablet or even their own Wi-Fi as it is built into the 34 Bytes device. The startup says the standalone processor accepts Bitcoin by scanning any wallet QR code and transacts with the exchange Coinbase to execute the transaction. The transaction can also be sent to a cold wallet if the merchant prefers. 34 Bytes says in the future more “back-end integration options will be announced soon.”
The company does not have access to a merchant’s private keys and the processor keeps the funds in the owner’s control at all times. Merchants who sign up for the beta-phase can participate for free by entering the “Free Bitcoin POS Terminal Contest” section found on the website.
Additionally, for six weeks 34 Bytes will waive the processing fees from the time of sign up and merchants are asked to provide feedback while testing the device and application.
The POS Landscape
There have been other services that have offered a standalone POS terminal for Bitcoin payment processing. The Toronto-based company Coinkite had introduced a terminal a few years ago but recently terminated this service in April of 2016. Also, the leading Bitcoin payment provider BitPay announced its partnership with Ingenico in October of 2015, which introduced a Bitcoin POS terminal as well at the Blockchain Week in Barcelona. With BitPay’s terminal plugin it allows 27 Million Ingenico Retailers to Accept Bitcoin.
Other companies offering terminal services via a smartphone or tablet include XBT terminal. However, ever since Coinkite ceased terminal services, BitPay and 34 Bytes will be the only ones offering a standalone device.