Advantages of Bitcoin for Retail
Overstock.com recently became the first major US retailer to start accepting Bitcoin. No doubt they saw advantages, for their revenue and business.
This has opened the floodgates. Other major retailers have started accepting Bitcoin. Tiger Direct is another retailer that has jumped on board.
Obviously encouraged by Overstock’s huge success. Since integrating Bitcoin into its payment options, Overstock did $1 million in sales revenue from Bitcoin in its first month alone.
This has lead to accusations of Bandwagoning. (i.e. this is opportunism and has nothing to do with supporting the growing currency).
However, such accusations are largely irrelevant. A business will choose a new payment option if it makes sense to their bottom-line.
So what are the advantages to a retailer in accepting Bitcoin:
1. Lower transaction fees:
It does not cost anything to start accepting Bitcoin. Transaction fees for merchants are much lower than traditional forms of payment, like credit cards.
2. No Chargebacks:
Chargebacks are a costly. But with Bitcoin they don’t exist. Bitcoins are like cash for the internet.
Once someone sends you Bitcoin there is no 3rd party to appeal to. The only way they can get those Bitcoins back is if the you, the retailer, send them back.
This reduces fraudulent transactions and associated costs to zero.
3. Tap into new global markets:
In a lot of countries credit cards simply aren’t offered. By accepting Bitcoin you can easily take risk free payment from places like these.
4. No data security risk:
Bitcoin allows for greater customer anonymity. This keeps retailers safe from liability in case of a security breach—such as the recent credit card hack at target.
From a retail perspective the advantages are huge and the disadvantages are next to none. It just makes sense for merchants to accept Bitcoin. Register your interest in merchant services here.