Many of you have heard of Bitcoin (the technology), and have been asking us about it and our ability to support you in accepting payments in Bitcoin. We’re pleased to say that we’re working on this for you.
Bitcoin is a digital currency that is less than five years old, but in that short time, has become one of the hottest topics in payments. Unlike traditional currencies that most people are used to, such as the dollar or euro, Bitcoin is borderless and truly global, and is not managed by any central bank or government. It’s fair to say that it is, in fact, governed by the power of mathematics, with the underlying technology protocol cleverly allowing payments to be made between two parties without any third party or intermediary involved in handling that transfer. This is achieved through a global network of users running the core Bitcoin software, creating a distribution network to validate transactions and update the public ledger of all Bitcoin transactions. This ledger is known as the blockchain.
These unusual characteristics of Bitcoin give it some unique advantages over traditional payment methods such as cards. The fees for processing a Bitcoin transaction are less than those for processing a card, enabling merchants to increase their margins. Furthermore, there is no chargeback mechanism with a Bitcoin payment -- it’s a push payment, much like paying with cash – so merchants can say goodbye to the headache of fraud when taking a payment in Bitcoin. Given its global nature, Bitcoin is also ideally placed to hasten the globalization of eCommerce, with merchants having a common payment mechanism that allows them to take a payment from anyone, anywhere – with no cross-border interchange fees or local acquiring relationships required. Finally, offering Bitcoin today helps you acquire new customers, as demonstrated by the results of early adopters such as overstock.com. Since using Bitcoin Overstock has seen a 60% increase in new customers.
We’ve partnered with Bitnet to help you take advantage of Bitcoin. The team at Bitnet is experienced in the payments industry, as well as experts on Bitcoin. The Bitnet team has over 150 years’ experience in the payment industry. They’ve built a platform to make it simple for enterprise merchants to take payments in Bitcoin.
Here’s how it works: You price in your local currency, the consumer pays in Bitcoin, and Bitnet will fund you in your local currency. You’re guaranteed your sales price, minus Bitnet’s fee, so you don’t have to worry about price volatility, either. Simple. Besides, consumers are asking for it, and accepting Bitcoin can increase sales.
We’re excited to bring the benefits of this partnership to all of our Customers. Please talk to your account manager to find out how Bitnet can fit into your eCommerce programs.
Contact Cardinal if you would like to learn more!