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OneBit promises to deliver easy payment with bitcoin at any merchant using the MasterCard PayPass� terminal. The company claims to already have a working bitcoin wallet app that converts your bitcoin to local currency in real time.

You pay for your purchase by keying in the amount to pay into the app and tap your phone on the PayPass� terminal. The app then converts bitcoin in your wallet to fiat using BitPay and MasterCard pays the merchant. There will be no fee to the consumer for the service as OneBit will be reimbursed by MasterCard for each transaction and the merchant pays his normal transaction fee to Mastercard.

The company hopes to have their Android only app available by end of this July. The entrepreneur behind OneBit is Toby Hoenisch, who is using social media to promote and raise venture capital but admits on reddit they currently have no formal partnership with Mastercard yet.

It remains to be seen if Mastercard will actually allow a card issuer to work with a bitcoin payment processor; particularly in the US. We do hope OneBit is able to bring their app to market as it would show Mastercard (who has not been exactly friendly to bitcoin) is changing their attitude toward digital currency. However, if it was simple to bring a true bitcoin point of sale solution or debit card to the US market we expect Coinbase would already have done so.