We live and work in a global world. It’s no wonder that many of today’s consumers are hungry for a digital currency that allows person-to-person transactions across borders—without governments or big banks getting in the middle.
Bitcoin, the first and most popular form of decentralized virtual currency, satisfies that demand by enabling fast, easy transactions over the internet. Since its debut in 2009, Bitcoin use has quickly become widespread. By 2013, the value of all bitcoins in circulation exceeded $1.5 billion. Last year, the number of daily bitcoin transactions grew by nearly 30 percent. Today, millions of dollars worth of bitcoins are exchanged every day.
As more individuals start using them, forward-thinking businesses are catching on and accepting bitcoin payments for a variety of goods and services. To provide a competitive edge among tech-savvy audiences, Bankcard Brokers now helps companies get set up for bitcoin use.
How Bitcoin Payments Work
Although they exist only in the digital realm, bitcoins are a type of real-world currency that isn’t controlled by any single organization. Instead, the currency is 100 percent open-source, which means anyone can see how the process works. Its transparency is an attractive feature to consumers who have become wary of central banks.
Bitcoins can be purchased through exchanges or earned by solving difficult math equations. As an individual acquires bitcoins, they’re stored in a virtual wallet from which they can be exchanged for products and services (or for a more tangible currency such as dollars, euros or yen). Although all transactions are publicly recorded, users can choose to remain anonymous—another highly attractive feature.
Why Businesses Accept Bitcoin
So what do businesses gain by accepting this fast-growing virtual currency? Here are just a few of the benefits:
Low exchange fees. You know those hefty fees that make it difficult for small businesses to accept credit cards? They aren’t an issue with bitcoin payments. When you accept bitcoins, they’re converted into fiat currency that’s deposited into your bank account for a lower fee than what credit card companies charge
Easy international transactions. Because bitcoins are an international currency, there are no limits to how many you can send or receive. You also won’t be charged for the international transfer, and you don’t have to wait to receive the funds.
Fraud liability protection. Bitcoin payments are irreversible and secure. This places the burden of security on the customer, so your business doesn’t have to bear the cost of fraud. Furthermore, because you don’t have to handle your customers’ personal information, there’s no need for PCI compliance.
Expanded market. Although bitcoin use is growing, it’s still uncommon for brick-and-mortar businesses to accept them. Allowing this form of payment opens your company up to a new customer base and offers increased visibility over the competition. Plus, it allows you to easily expand into new markets where credit cards are not available or fraud rates are unacceptably high.
As bitcoins become more mainstream, accepting them will open up new sources of revenue for your business. Talk to Bankcard Brokers today to learn how your company can benefit from accepting bitcoin payments.
[Photo by, BTC Keychain, via CC License]