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INSIDEBITCOINS

Note: PayFast no longer supports Bitcoin payments as of 20 July You can read more about why PayFast ended support for Bitcoin. Starting today, PayFast sellers can start accepting Bitcoin payments from local and international buyers. Simply put, Bitcoin is an innovative digital payment method, performed over the peer-to-peer Bitcoin network.

For a more thorough explanation, you can read this. The bitcoin is then stored in a Bitcoin wallet. There is a predictable amount of bitcoin in circulation and a limited amount is released over time. Since it takes a certain amount of know-how, operating power and electricity, mining is generally the most complicated way for the average person to get Bitcoin. There are Bitcoin exchanges in countries all over the world. Anybody who has Bitcoin in a Bitcoin wallet can send it to anybody else —anywhere in the world— provided that the recipient also has a Bitcoin wallet.

This is very much the same way that the market collectively and continuously decides what the price of other resources, like platinum or gold or currencies, should be. Herein lies the biggest problem for sellers: volatility. If a seller listed a product on their website for 1 BTC at an exchange rate of R and someone purchased that item at a later date, when the rate of exchange is lower say R , they would ultimately lose out on the transaction or have some explaining to do to their accountant.

Sure, the seller would have 1 BTC in their possession, but that single bitcoin might be worth less than what the product originally cost. PayFast sellers will still display their products and services in South African rand, as they always have. The buyer is shown the BTC amount —at the current rate of exchange as provided by Luno previoulsy known as BitX — and a Bitcoin address where they should send the funds.

After sending the funds using whichever Bitcoin wallet they want to: mobile, desktop or cloud , they click on a verification button on the PayFast engine. The seller will receive a notification from PayFast stating that a payment has been received. Opening a PayFast account is instant and free and the verification process is usually completed in under eight business hours.

Log in to your PayFast account, navigate to Settings and click to enable Bitcoin or any other supported payment methods. Comment below or if you have specific support questions, reach out to our friendly Support Team. Our online registration process makes it easy for you to sign up for an Individual, Business or Cause account. Read more about Disclosure The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies.

CoinDesk is an independent operating subsidiary of Digital Currency Group , which invests in cryptocurrencies and blockchain startups. Deutsche Telekom. Market Wrap. What is undefined?

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The Ultimate Online Payment Solution. Contact Sales. Flexible payment solutions for any business Whether you have a website or not we offer easy, secure and instant payment processing for South African businesses. Ecommerce We make it easy to accept payments from local and international buyers. Invoicing Streamline your invoice management with integrated account reconciliation. Event Ticketing Manage event registrations and online ticket sales effortlessly.

What we offer you We provide the best tools and support system to help your online business grow. No Monthly Fees Only pay a small transaction fee when you make a sale. Simple Integration! Spoilt for choice. View all plugins Custom Integration. Initially Bitcoin held promise of a global currency that would allow a faster, cheaper and easier way to move money on the Internet.

This included the movement of funds for day-to-day transactions, such as buying a cup of coffee. Our aim was to enable that promise for our buyers and merchants, and to support this alternative to traditional payment methods. A buyer always paid the Bitcoin amount while a seller received the equivalent rand payment in their PayFast account. If the transaction was not sufficiently confirmed within 10 minutes, the payment was unsuccessful and a refund would be due. As Bitcoin has grown in popularity, it has become increasingly difficult for the network to sufficiently confirm transactions within the 10 minute time limit.

In addition to the frustration that buyers experience when their payments fail, Bitcoin users may also incur a non-refundable fee for every attempted payment. This is the fee the network charges to process a transaction. Therefore anyone trying to pay using Bitcoin opens themselves up to the risk of paying the Bitcoin processing fee, even if the payment fails. The processing fees themselves may vary according to the Bitcoin price and the time required for acceptance to the blockchain. The more Bitcoin gains in value, the higher these fees.

The overall slow performance and computational power consumed by the Bitcoin blockchain to validate transactions, make Bitcoin less useful currently as a means of exchange and better-suited as an asset. In comparison Visa performs at around 24, transactions per second and even newer cryptocurrencies fare significantly better than Bitcoin with Ripple processing approximately 1, transactions per second.

Constant innovation and improvements are being made to both the network and the way cryptocurrencies are built. As soon as these become workable alternatives, we look forward to supporting cryptocurrencies as a payment method in the future. Until such a time, we have decided to end support for Bitcoin from 20 July This means that Bitcoin will no longer be displayed as a payment method on PayFast.