Pure Bitcoin Payments Explained: A Complete Guide to GoMining’s New System

Did you know most “bitcoin payment” services actually convert your crypto to dollars before the merchant sees a cent? GoMining, a major Bitcoin mining company, just launched a new system called GoBTC Pay that challenges this status quo. Unlike Jack Dorsey’s Square (now part of Block), which automatically converts Bitcoin payments into US dollars for merchants, GoMining lets businesses receive and hold actual BTC by default. For crypto users who believe in Bitcoin as a store of value rather than just a payment rail, this is a significant shift in how merchants can interact with digital currency. This guide explains what GoBTC Pay does, how it differs from existing services, and what it means for the future of Bitcoin payments in 2026.

Read time: 10-12 minutes

Understanding Bitcoin Payment Rails for Beginners

A Bitcoin payment rail refers to the infrastructure that allows merchants to accept Bitcoin as payment for goods and services. Think of it like a credit card network—Visa doesn’t just process transactions; it provides the entire system for banks, merchants, and customers to interact securely. Similarly, a Bitcoin payment rail is the technology layer that connects a customer’s BTC wallet to a merchant’s business systems.

Why do we need a separate payment rail? Because sending raw Bitcoin transactions has real problems for everyday purchases. The original Bitcoin network processes about 7 transactions per second (compared to Visa’s 24,000+), and transaction fees can spike dramatically during busy periods. In December 2023, average Bitcoin transaction fees hit $37 during peak congestion. A payment rail solves these issues by adding a layer on top of the base Bitcoin network that handles speed, cost, and complexity.

A real-world example: When you buy coffee with Bitcoin today, the payment service might use the Lightning Network (a faster second layer) to instantly settle the transaction, then convert the BTC to fiat currency before depositing into the merchant’s bank account. This works, but it defeats the purpose for Bitcoin believers who want to actually hold the asset.

The Technical Details: How GoBTC Pay Actually Works

GoMining’s new system operates differently from competitors. Here’s the breakdown:

1. Direct On-Chain Settlement: GoBTC Pay settles transactions directly on the Bitcoin blockchain using GoMining’s Stratum V2 mining protocol. Unlike Lightning Network solutions, this preserves the security and finality of the main Bitcoin chain.

2. 12-Hour Settlement Window: Transactions take approximately 12 hours to confirm. This isn’t instant like Lightning, but it’s predictable and avoids the high fees of urgent transactions.

3. Transparent Fee Structure: Merchants pay 0.2% in transaction fees—significantly less than the 2-3% typical credit card processing fees. These fees are split 50-50 between wallet providers and miners.

4. SDK and API Access: GoMining released a software development kit (SDK) and application programming interfaces (API) that let merchants build custom payment solutions. This is crucial for integration into existing point-of-sale systems and e-commerce platforms.

5. Non-Custodial Design: The merchant never gives up control of their Bitcoin. The system preserves “non-custody and onchain finality,” meaning the business holds its own private keys and receives confirmed transactions directly.

Why this structure matters: Most Bitcoin payment systems act as intermediaries that hold and convert your funds. GoBTC Pay is designed to be a pure pipeline—Bitcoin goes from customer to merchant without touching a third party’s balance sheet. This aligns with the original vision of peer-to-peer electronic cash.

Current Market Context: Why This Matters Now

As of mid-2026, the battle for Bitcoin payment infrastructure is heating up. GoMining’s announcement comes at a time when:

Institutional Adoption is Growing: Major companies like MicroStrategy and Tesla have added Bitcoin to their balance sheets. The logical next step is enabling them to accept Bitcoin as payment directly, not just hold it as a treasury asset.

Lightning Network is Maturing: Block (Square) has been actively rolling out Lightning-based payment solutions for over a year. Their system processes instant transactions but defaults to converting BTC to USD for merchants—unless the merchant specifically opts out.

Transaction Fees are Volatile: Bitcoin network fees ranged from $0.50 to $15 in the first half of 2026, depending on network congestion. A 12-hour settlement window with predictable fees is attractive for certain merchant types.

GoMining’s Mining Advantage: As a mining company, GoMining can prioritize its own transactions through Stratum V2, potentially reducing confirmation times and costs compared to third-party payment processors.

The key differentiator: GoMining is betting that more businesses want to receive and hold Bitcoin directly, rather than having it automatically converted to fiat. This is a philosophical bet on Bitcoin as an asset class, not just a payment method.

Competitive Landscape: How GoMining Compares

Feature	GoMining (GoBTC Pay)	Block (Square)	Traditional Payment Processors
Default Settlement	Bitcoin (pure BTC)	US Dollars (fiat)	Fiat currency
Settlement Speed	~12 hours (on-chain)	Instant (Lightning)	1-3 business days
Transaction Fee	0.2% (shared with miners)	~1-2% (varies)	2-3% + fees
Custody Model	Non-custodial (merchant holds keys)	Custodial (holds & converts)	Custodial
Infrastructure Access	Open SDK & API	Proprietary system	Closed loop
Best For	Bitcoin-native businesses	Mainstream retailers	All retailers

Why this matters for users: If you’re a Bitcoin believer who wants merchants to actually keep your BTC instead of selling it, GoMining’s model is philosophically aligned with your values. If you just want convenience and instant payments, Square’s system may be more practical for everyday shopping.

Practical Applications: Real-World Use Cases

Bitcoin-Native Retailers: Online stores that accept only Bitcoin (like luxury goods or services targeting crypto enthusiasts) can integrate GoBTC Pay and keep their treasury in BTC.

HODLer Merchants: Businesses that view Bitcoin as a long-term store of value can accept payments and hold them—avoiding the taxable event of converting to fiat.

High-Value Transactions: Real estate, art dealers, or luxury automotive dealers dealing in large BTC transactions may prefer the security and finality of on-chain settlement over instant, but less permanent, Lightning payments.

Crypto-Forward Businesses: Companies in crypto-friendly jurisdictions (El Salvador, Switzerland, certain US states) can build custom payment flows using the SDK.

Miners and Mining Companies: GoMining’s own ecosystem of mining operations can use GoBTC Pay for internal payments, hardware purchases, or energy contracts settled in BTC.

Who benefits most: Businesses with a long-term Bitcoin thesis who want to avoid the friction and tax implications of converting every transaction to fiat.

Risk Analysis: Expert Perspective

Primary Risks:

1. 12-Hour Settlement is Slow: For retail businesses (coffee shops, grocery stores), 12 hours is an eternity. This is not designed for point-of-sale transactions—it’s for larger, less time-sensitive purchases.

2. Volatility Exposure: Merchants holding BTC face price fluctuations. A business accepting $1,000 in Bitcoin could see its value drop to $850 by the time settlement completes. GoMining pushes this risk to the merchant.

3. Limited Initial Adoption: GoMining plans to recruit only 10 initial merchants. The payment rail is only as useful as the number of places that accept it—a chicken-and-egg problem.

4. Technical Complexity: Non-custodial solutions require merchants to manage their own private keys. A mistake could mean losing funds permanently.

Mitigation Strategies:

GoMining could add optional fiat conversion for merchants who want it (currently not offered).
The 0.2% fee structure allows for high-volume, low-margin businesses to profit despite settlement delays.
GoMining’s mining infrastructure provides a natural hedge against Bitcoin price volatility.

Expert Consensus: This is a niche solution for Bitcoin-native businesses, not a mainstream payment processor. It’s philosophically pure but practically limited in the short term.

Beginner’s Corner: Quick Start Guide (For Merchants)

If you’re a business owner interested in GoBTC Pay, here’s how to get started:

1. Assess Your Bitcoin Thesis: Ask yourself: Do I want to hold Bitcoin long-term, or do I need dollars to pay bills? If you need fiat, this system may not be right yet.

2. Get a Compatible Wallet: Ensure you have a non-custodial Bitcoin wallet that supports receiving on-chain transactions (like Electrum, Ledger, or Coldcard).

3. Apply for Access: Contact GoMining to join the initial merchant rollout. They’re recruiting 10 merchants as part of the launch.

4. Integrate the SDK: Work with your development team or a contractor to integrate GoBTC Pay’s SDK into your existing payment system.

5. Set Up Your 12-Hour Settlement Queue: Plan your inventory and cash flow around the settlement delay. This isn’t instant payment.

Common Mistakes to Avoid:

Don’t use this for retail point-of-sale—it’s designed for larger, planned transactions.
Don’t skip private key security—use a hardware wallet for significant holdings.
Don’t assume all customers understand this—you’ll need to educate your buyers about the settlement timeline.

Future Outlook: What’s Next

GoMining’s announcement is just the beginning of what could be a growing trend toward Bitcoin-native payment infrastructure. Looking ahead:

1. More Merchants Expected: After the initial 10 merchants, GoMining plans to expand the rollout. Success will depend on how well the first cohort integrates and educates their customers.

2. Potential for Fiat Conversion: If demand exists, GoMining could add optional fiat conversion as a premium feature, serving both Bitcoin purists and practical merchants.

3. Competitive Response: Block (Square) and other players may respond with their own “Bitcoin-first” payment options, potentially accelerating adoption.

4. Layer 2 Integration: While GoBTC Pay uses on-chain settlement, future versions could integrate Lightning or other second-layer solutions for faster options.

5. Regulatory Considerations: As Bitcoin payment systems mature, regulators (especially in the EU under MiCA and in the US under potential stablecoin legislation) will likely scrutinize how merchants handle consumer protection and refund disputes.

Key Takeaways

GoMining’s GoBTC Pay offers a pure Bitcoin payment rail that lets merchants receive and hold BTC by default, unlike competitors that automatically convert to fiat.
The system settles on-chain in ~12 hours with 0.2% fees, making it suitable for larger, planned transactions but not for instant retail purchases.
This is a philosophical bet on Bitcoin as an asset class, challenging the mainstream approach of using BTC only as a payment method while converting to dollars.
Initial adoption is limited to 10 merchants, but the open SDK and API could enable broader integration if the model proves viable.

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