Bitnet Technologies

Bitnet Technologies was established in 2014 by co-founders John McDonnell and Stephen McNamara, both of whom brought extensive experience from the payments industry. Their background includes key roles at CyberSource, a major payment gateway that was later acquired by Visa. This experience heavily influenced Bitnet's design, which was modeled after CyberSource's robust platform.

The company focused on providing an enterprise-grade digital commerce platform that enabled large-scale merchants to accept bitcoin and other digital currencies. Bitnet's business model revolved around charging a low transaction fee (under 1%) to provide merchants with guaranteed payment, eliminating risks associated with price volatility, fraud, and chargebacks. The platform was designed for high-volume clients such as airlines, retailers, and digital content publishers, offering them a cost-effective way to reach a global consumer base without incurring cross-border fees. Merchants could integrate Bitnet's service through its API and choose to receive their settlement in either bitcoin immediately or local currency within five days.

In October 2014, Bitnet secured $14.5 million in a Series A funding round led by Highland Capital Partners. Other notable investors included Rakuten, Webb Investment Network, Stephens Investment Management, and Digital Currency Group. This funding was intended to fuel the platform's launch and expansion into European and Asian markets. Throughout its operation, Bitnet formed strategic partnerships with payment service providers like Computop and PAY.ON to extend bitcoin payment options to thousands of merchants.

Ultimately, in August 2016, the Japanese e-commerce giant Rakuten, which had been an early investor and customer, acquired Bitnet's intellectual property assets for an undisclosed amount. Following the acquisition, Rakuten established the Rakuten Blockchain Lab in Belfast, Northern Ireland, hiring former Bitnet executives, including CTO Stephen McNamara, to lead the new research and development organization focused on blockchain applications in e-commerce and fintech.

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