Bitcoin was invented in 2009. making the most of everything we know about the internet and online security. Its a payment system designed specifically for internet purchases from the ground up. While credit card companies spend countless resources trying to make their outdated products work better online, theyll never be able to match the simplicity and security of Bitcoin.
Bitcoin works like cash for the internet. Its sent from person to person in a push transaction, not drawn from accounts by third parties. It uses cryptography to provide proof of ownership, bypassing the traditional multiparty routing and authorization processes that transmit sensitive customer information. With this native solution for payment security. Bitcoin functions without a charge-back mechanism like the one todays card system is built on. Customers and merchants alike are protected from fraud and its costs. If your business accepts a large number of payments over the internet, accepting bitcoin might make sense for you. Here are three
Areas of online payments on which accepting bitcoin can have the most impact.
Macropayments: Between $1,000 and $10,000
Credit cards make payments between $1,000 and $10,000 more difficult. At this scale, interchange fees of up to 3 percent on card transactions can quickly add up. These macropayments are also at a higher risk of fraud. When criminals obtain stolen credit card information, they try to buy the most expensive things they can find before the cards get deactivated. Merchants selling items in this price range are at the forefront of the battle against payment fraud. For merchants like precious-metals giant JMBullion. com. Bitcoin already provides a much – needed solution.
International B2B Payments
Businesses that need to receive payments from international clients are often hit with elevated interchange rates, which vary from country to country and can easily be over 5 percent per transaction. In many of the worlds fastest-growing economies, businesses may not have access to card networks at all. Wire transfers can be received from more countries, but they are inefficient solutions. Bank wires rely on a large network of corresponding relationships, leading to unpredictable costs and transfer times to simply get money from point A to point B. Senders and recipients end up with little or no information as to the delays and fees incurred along the way.
Bitcoin changes that. There is tremendous potential for companies to offer Bitcoin as a payment option for their International receivables. Its faster, lower-risk and costs less than any other payment method. Weve already seen traction — Bitcoin billing already makes up more than 10 percent of transactions run through one Bitcoin payment processor, and those B2B payments are 25 times the size of average consumer Bitcoin payments. If your business has international clients, then accepting bitcoin also might be worthwhile for you.
Businesses dont just need a new way to accept payments. Many times, they need to issue payouts as well. Some businesses have large fleets of affiliates, consignment sellers or vendors that need to get paid their revenue share on a regular basis. Traditional bank transfers work well if you need to pay a batch of payments in the same country (for example, a domestic payroll).
However, these traditional transfers break down when businesses need to send batches of small
Payments internationally. Those small international payments are very costly to send via bank transfer. Plus, the banks and their routes can be different in every country, and making a mistake in a transfer Instruction can lead to delays.
Bitcoin payments operate on the same network worldwide, with a direct point-to-point access to any internet-connected device on earth. Marketplaces, affiliate networks and app stores can pay their users directly, frequently and cost-effectively with Bitcoin. Imagine a rldeshare driver getting paid after every ride, or an app store developer getting paid after every download.
Getting Started With Bitcoin Payments
Integrating Bitcoin payments into your business is a fairly simple process. If you have a small business or online store, you can start accepting bitcoin in just a couple of hours. Billion-dollar enterprises take a little longer.
Most Bitcoin payment gateways allow you to set your prices in your local currency. More important, they can settle incoming bitcoin funds in
Your local currency and local bank account. This way. the rise or fall in the price of bitcoin doesnt affect the price of your product or service. A partnership with a payment processor can essentially eliminate any risk with Bitcoin.
In fact, due to the lower cost of accepting bitcoin payments and the publicity it can bring as a byproduct your business has more to gain than to lose. And youll be joining the more than 100.000 merchants worldwide who already accept bitcoin. Even as Bitcoin matures in its growth as a technology, the opportunities for merchant adoption remain wide open. It is expanding the possibilities for online commerce well beyond the limits of traditional payments. Is your business ready?