Stripe, the online payment processor that graduated from Y Combinator in 2010, announced last week that it was testing Bitcoin support and would be opening up to beta testing in the near future.
At the moment, experimentation with the currency is quite limited. Tarsnap, a cryptographic online backup provider, has partnered with Stripe to test out Bitcoin payments.
“There is an even stronger connection to many of the ‘alternative cryptocoins,’ since many make use of the scrypt key derivation function which I developed for securing Tarsnap's passphrase-protected key files.”
Little Else Known
Other than the announcements from Percival and Stripe, we don’t know much more about Stripe’s plans for Bitcoin payments.
In an interview with Pete Rizzo, Stripe lead engineer Christian Anderson said the company was taking a long-term position on the currency.
“People selling online aren’t going to shift all their sales to Bitcoin overnight, or even in the next few months,” Anderson said. “There’s some education needed on what accepting Bitcoin means and what the advantages are.
“We also need to make the consumer buying experience better. That’ll take time.”
Stripe’s Recent Series C Round
Time is exactly something Stripe bought itself recently. In late January, the company raised an $80m Series C round of funding that included investments from Peter Thiel and Sequoia Capital.
That put the valuation at about $1.75 billion for a company that processes payments and allows developers to create their own payment forms.