Bitcoin Best Prac-ces: Reshaping the Payment Landscape
Maria Sparagis President, DirectPayNet
@directpaynet
Upcoming Changes in card industry • EU Commission is leading to the ac-on that is expected to see costs capped at 0.2% for debit and 0.3% for credit card transac-ons.
• Visa Europe, which with Mastercard dominates the market, has offered to reduce by around 50% the 'interchange fee' charged by banks to a retailer.
• As a result, consumers who pay off their monthly bill may be hit with an annual fee, and many other new fees will be added to consumers to balance the loss
• Canada recently ruled against imposing interchange caps for the credit card networks
Bitcoin payments vs credit cards
• Simple check-‐out process • Can be more anonymous • No currency exchange rates/interna-onal approval • Payments are final with no risk of CBs • Easier merchant entry = more compe--on
• Widely accepted
• Easily traceable and consumer protec-on programs
• Allows consumers to have addi-onal buying power outside of income • Quick approval -mes
Bitcoin payments vs credit cards • Longer transac-on approval -me (possibility of double spend) • Vola-le exchange rates • Not widely accepted so likely need to convert to fiat • No recurring payment possibility
• Long applica-on process for merchants • Currency and market restric-ons • Barriers to entry in certain markets • Merchants subject to reserves & high fees • Long checkout and conversion loss
Challenges ahead…
• Making BTC more readily available and lower exchange fees • Using CC to buy BTC in bulk not a viable op-on • Government regula-ons will be different across the world for digital currencies
• Ge^ng BTC out of the “grey” area of commerce
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