Payment services provider Square has been granted a patent for a crypto-to-fiat payments system. The system will facilitate the easy and real-time conversion of any currency, be it crypto or fiat, to the recipient’s preferred currency. Square believes that it can transform the retail payments sector with the system, allowing merchants to accept all forms of payment.
In its announcement, the U.S. Patent and Trademark Office revealed that the San Francisco, California-based company filed for the patent in June, 2018. Square intends to solve the age-old challenge that merchants face while accepting crypto payments – volatility. Once a merchant accepts payments in crypto, he stands the risk of the crypto could losing some of its value, negatively affecting his business.
To curb this, the system will allow the conversion of a crypto to the merchant’s preferred currency in real time. The filing states:
“In one embodiment, a method includes receiving a request for payment associated with a transaction between a first user and a second user, where the request specifies a payment amount in a fiat currency and identifying an indication that the first user intends to satisfy the request for payment using a non-fiat instrument. […] The present technology permits a first party to pay in any currency, while permitting the second party to be paid in any currency.”
The system also intends to solve yet another challenge that has restricted crypto payments – speed. While BSV transactions are real-time, most of the other blockchains take up to twenty minutes to process a transaction. This is impractical in a retail setup.
“The present technology can process and approve a cryptocurrency transaction in near real time, i.e., in seconds. In some embodiments, cryptocurrency transaction approvals can be similar to the amount of time taken to approve a credit card transaction,” the Jack Dorsey-led company stated.
With Square at the heart of the transactions, the system is also expected to create trust between the transacting parties. This will enable merchants to receive payments from privacy coins without having to worry about the legitimacy, the filing claims.
Apart from cryptos, the system will also facilitate payments through other assets, including stocks, bonds and derivatives as well as loans and contracts.
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