GoCoin launches SMS-based bitcoin payments

Earlier this week, cryptocurrency-based payment system GoCoin launched a new payment system allowing merchants to initiate digital currency payments via SMS or email. The “Click-to-Bill” system, outlined in an article on CoinDesk, is currently aimed at the pre-paid phone market, and will allow customers to easily top-up bitcoin, litecoin and dogecoin-connected accounts without the need to use a QR code. Unlike traditional pre-payment and recurring payment systems, the Click-to-Bill method could provide a reasonable incentive for users to switch to bitcoin, as it involves no credit or debit card processing fees.

Using the system, a customer would receive an SMS text or email alert containing a payment link. That link is connected to a pre-filled form on the customer’s GoCoin wallet, and asks for payment confirmation. A once-click confirmation is all that is required to complete the transaction.

Although seemingly designed for GoCoin’s current pre-paid phone partner RingPlus, the service could easily be applied to almost any system where ongoing or recurring payments are needed. GoCoin CEO Steve Beauregard told CoinDesk that the Click-to-Bill system may soon be used by other telecom services, such as T-Mobile and Verizon. He noted that the linked-wallet and SMS gateway service is the first significant attempt to solve one of an often-cited problem for bitcoin adoption: Ease of use.

“One of the things that we’ve identified is we’ve got to move past consumers that are holding bitcoin and finding places where they want to use it to transact easily, and this is something that encourages people to buy bitcoin for the purposes of transacting,” Beauregard said.

GoCoin also created a simple video demonstration of the new payment option for customers.