Cheapair.com is asking for customer feedback on using Bitpay to process bitcoin payments as its existing processor, Coinbase, is getting out of that business at the end of the month. Cheapair.com has also revealed additional plans for cryptocurrencies.
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Coinbase Problem
Travel booking website Cheapair.com has been accepting bitcoin as a payment option for flights and hotel bookings since 2013. The company currently uses Coinbase to process its bitcoin payments. However, CEO Jeff Klee announced on Friday:
We were recently informed by our processing partner, Coinbase, that they will no longer support ‘custodial’ solutions for merchants, and are removing a number of the tools and features that we rely on to accept bitcoin from Cheapair.com shoppers. These changes are scheduled to occur in a matter of weeks.
He explained that bitcoins received by Cheapair.com are immediately converted to fiat because the company has to immediately transfer them to its travel supplier partners such as airlines and hotels. “Coinbase has been providing that service for us, but at the end of the month they are getting out of that business, leaving us scrambling for an alternative.”
Cheapair.com’s rival, Expedia, also accepts bitcoin payments via Coinbase, with a disclaimer on its Terms and Conditions page. “We do not guarantee and are not responsible for the availability of Coinbase’s services.” While Cheapair.com allows bitcoin payments for flights and hotels, Expedia only offers the payment option for hotel bookings.
Migrating to Coinbase Commerce
Coinbase first announced the launch of its new service for merchants in March. With the launch of Coinbase Commerce, the company is “retiring Coinbase’s Merchant Tools product to focus on making Coinbase Commerce the best possible solution for online retailers,” Coinbase
