Why Merchants not Accepting Bitcoin?
Oct 29, 2017 Posted / 4298 Views
The present scenario is, out of the
prominent 500 Internet sellers, only three accept
Bitcoin, since its inception in the year 2009. This decline is what experts
around the globe call striking discrepancy, amidst, the value of Bitcoin surging to a peak over
$6,000 a few days back.
This peak is not benefiting customers and merchants since the acceptance rate is low. The rise in the transaction volumeof Bitcoin, which is around 55%, is owing to trading rather than merchant payments.
Here we take a look at some of the prominent reasons merchants aren’t making any advances to accept Bitcoin.
Yes, the price of the Bitcoin currency is skyrocketing, several reports and online surveys, found that people are holding this electronic currency, more interested in keeping the company rather than spending it at retail outlets. This is what pushing back merchants across the globe from accepting Bitcoin as a mode of payment. So, on the whole, retailers believe that Bitcoin is an investment currency for the upper-class section of the society, not for shopping at grocery malls.
Lack of proper knowledge that, what is Bitcoin and how it works is the biggest culprit here. Many of us still only know the controversies around cryptocurrency, what media houses discuss on the prime-time debate. This is, even more, worst for the expansion of Bitcoin, as no knowledge is better than a little knowledge. This is what promoting merchants worldwide to stay away from the most valued cryptocurrency, Bitcoin because they don’t know what it is?
To boil down, though, the digital currencies such as the Bitcoin look like nowhere as mode of payment at merchant outlets globally, this currency will continue to evolve and will raise its value at the retail level, as more and more people will come to know about the perks of the technology as a cheaper and simple means of payment, both for merchants and customers.
High Transaction Fees, the Popular Myth
Many of merchants are still in the fool's world that transaction costs of Bitcoin are sky high, they have to pay off a major chunk of their revenue to the Bitcoin company. But, as we know, the truth is on the other side, unlike credit cards and digital transaction applications, the per transaction cost of Bitcoin is significantly low (just a few cents), nearly touching the zero mark. Add to the merchants don’t have to pay any monthly deposit or the rental fees of the machine. Sure, currently, most of your customers must be paying off their bills via hard cash, while a small section of them though through their credit cards, adding Bitcoin as a means of payment at your store is a future investment, as some years from now, like credit cards they will enter into our daily lifestyle.
No Chargeback, Retailers Don’t Know About This Perk of Bitcoin
When you accept Bitcoin as a means of payment at your retail store, you don't have to confront the problem of chargebacks, meaning there is no risk. Chargeback is a common problem with credit cards, where the buyer can retrace the transaction, if he or she doesn't like the good supplied or purchased, thereby, keeping merchants at the helm of their customers. Chargeback, unknowingly, have a huge impact on the yearly revenue of a store, and specifically, if you run a small to a medium-sized retail outlet.So, in a nutshell, if you start accepting Bitcoins, you will be the real beneficiary.
Contrary, to what the popular belief is, it is extremely simple for merchants to start accepting Bitcoin, unlike, credit cards, no need for any swipe machine and monthly rent. Accepting payment via Bitcoin is as simple as downloading the Bitcoin wallet on your smartphone, or opening a Bitcoin web wallet online and generating the QR code for customers to scan the code and make the purchase in just a few seconds. The payment is done immediately, moreover, no waste of paper, no slips, unlike credit card swipe machine. It's simple as a breeze, you don't need to place an initial deposit or go through a complete process of setting up Bitcoin payment and get going.
Need a Lot of Publicity
Just by placing a 'Bitcoin Accepted Here,' board next to counter, won't draw immediate effects since most of the buyers aren't into this Bitcoin stuff when shopping. You need to do a lot of publicity, sending pamphlets to homes, that you are a retail store in their town accepting Bitcoin. Since Bitcoin is new as a retail payment mode, you need to spend some extra dollars on its publicity.
There are a number of reasons for a merchant to embrace Bitcoin as a means of payment, so why wait or hesitate, accept now!
Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .
Hottest Blockchain Newsletter
For updates and exclusive offers, enter your e-mail below.