Bitcoin payment processor BitPay announced the first major Canadian implementation of its point-of-sale solution. Luxury jewelry retailer Birks Group will now be able to take payments in Bitcoin at its Canadian stores. BitPay first implemented POS sales for luxury jewelers in 2014 in the U.S. and in 2016 in Europe.

BitPay provides Bitcoin POS solution

BitPay is providing its Bitcoin POS solution to eight of Birks Group (NYSEAMERICAN:BGI) stores in Canada. Stores will also make use of web and mobile solutions provided by BitPay. BitPay’s POS solution can be used through web and mobile interfaces or integrated with many currently available POS systems.

Birks Group is said to have many international shoppers who will find bitcoin as payments of interest. This option is likely to increase their customer base as other jewelers accepting bitcoin have discovered. Bitcoin resolves much quicker than wire transfers which are also frequently used by international shoppers spending large amounts but have the downside of sometimes taking days for resolution.

Challenges for Bitcoin POS solutions

With a broad range of financial institutions exploring ways to participate in the cryptocy craze, it is no surprise that the leading form of cryptocy, Bitcoin, is increasingly accepted as a form of payment both online and in brick and mortar stores. Yet the point of sale solutions offering Bitcoin as a payment option is highly challenging as illustrated during the peak of the bitcoin boom in 2017.

When the number of Bitcoin transactions is high, transaction fees and the amount of time it takes to confirm transactions also rises. This is due to what could be described as a bidding system to prioritize transactions by paying higher fees to ensure the likelihood of a quicker transaction. There are many variables in the process but the basic idea is that more transactions will drive up cost and time which can lead to difficulties for a customer who is unsure of how much it may cost to actually use bitcoin and how long they will have to wait for a POS system to complete the transaction.

Bitcoin developers have found ways to speed up and reduce the cost of transactions. Bitcoin alternatives have been introduced, one of which, Bitcoin cash, BitPay also accepts. In addition, transactions are at somewhat of a low due to the lessening of last year’s bitcoin craze. And, in the case of luxury jewelers, customers making large payments may be less price sensitive when it comes to transaction fees.

BitPay’s history with luxury jewelers

BitPay’s first retail luxury jewelry client was Stephen Silver Fine Jewelry which claims to be the first jeweler in the world to accept cryptocy payments in 2014. The Silicon Valley-based jeweler says that cryptocy payments are now higher than the use of credit cards. But CEO Stephen Silver’s big interest is in comparison with wire transfers which he sees as more complicated, less secure and much slower with two to three day wait times for completion.

Silver also states that “We’ve created revenue that the company would not even enjoy without being able to accept cryptocy.” He also points out that “Large sums of money are where we are finding cryptocy to be a huge advantage.” For a luxury jeweler, large sums of money are the name of the game.

BitPay began servicing Europe’s luxury jewelers in 2016 with bitcoin payment solutions for Ace Jewelers Group’s online store. The Amsterdam-based retailer claims to be the first Dutch jeweler to provide e-commerce sales beginning back in 2008.