Payment platform and mobile wallet provider GoCoin has announced plans to merge with e-commerce loyalty and credit card processing company Ziftr in order to more effectively compete in the bitcoin market, according to a press release. The companies plan to integrate to provide a platform that offers incentives for buyers to use virtual currency.

When users pay with a credit card or virtual currency, they will receive cash back in their ziftrWallet mobile wallet, the release said.

"Loyalty points play a key role in a consumer’s choice of payment method, and with the ziftrCoin loyalty platform integrated into the ziftrWallet, I believe we can finally give consumers the right experience to choose digital currencies over cards at checkout," GoCoin Founder and CEO Steve Beauregard said in the announcement.

GoCoin currently boasts the status of third largest blockchain payment processor, according to the announcement. The company hopes this new merger will enable it to challenge Coinbase and BitPay more effectively. Also, Ziftr CEO Bob Wilkins believes this merger will help further disrupt the payments market.

"Ziftr has many of the necessary assets to accelerate mainstream adoption of digital currency, so merging with GoCoin and gaining access to its rapidly growing network of merchants gives our combined altcoin-friendly company the power to truly disrupt the $20 trillion global payments market," Wilkins said. "Our platform will allow merchants of all sizes to benefit from the transparency and efficiency of blockchain payments by giving them a better solution than what's currently available."