Bitnet, a bitcoin payments processor, has selected web services startup BlockCypher as a key data provider for its new service, which will mitigate risk for merchants when accepting bitcoin payments.

The new service called, Instant Approval, addresses the challenge faced by merchants of waiting for bitcoin transactions to be confirmed on the blockchain.

It is claimed that the service can assess the probability that a bitcoin transaction will be confirmed on the blockchain within seconds and will send the merchant a notification. Currently, the process can take over an hour if merchants require guarantees from their payment processor that transactions will be settled.

BlockCypher will be providing key blockchain data to Bitnet, that will use it in real-time to assess the probability of a fraudulent transaction.

Bitnet VP product Seamus Cushley said: "One of the biggest challenges for merchants wanting to accept bitcoin is how to accommodate the delayed confirmation times into their ‘real-time’ checkout flows and still be assured of being funded.

"We partnered with BlockCypher to provide key data for our ‘Instant Approval’ service due to their best-in-class metrics and enterprise service."