Blockchain payments processor BitPay recently conducted a study focusing on bitcoin payments. The study cites four merchants operating different businesses that have put into effect bitcoin payment methods. The participants include an electronics products retailer, a gold dealer, an online gift card business, and a domain-hosting services firm.
According to the study’s report, the anonymous vendors lauded the absence of fraudulent chargebacks when using cryptocurrencies, citing the importance of this aspect when dealing with the traditional financial system.
Furthermore, although the merchants noted that even though cryptocurrency transactions make up only 0.5 to 6.5 percent of their total sales, their implementation has driven new customer influx consistently by more than 40 percent in the past three years.
COVID-19 pandemic has driven cryptocurrency transactions
The advent of the coronavirus pandemic has clearly expanded the adoption of blockchain payment methods. Consumers are substituting cash with alternative solutions, mainly bitcoin. With the novel virus restructuring our society on every level, the attraction of a haven asset has prevailed. Bitcoin has ticked almost every box so far in its early life, acting as both a store of value and payment means.
According to BitPay’s report, the merchants registered improvements in online shopping during the pandemic. As a result, the number of cryptocurrency transactions also shot up on their respective platforms. Furthermore, the report highlights that 11 percent of the responding clients claim that they are encountering digital currencies and other digital means of payment for the first time.
Movement restrictions during the lockdown have resulted in the reduction in cash usage as a means of payment. The fear of contracting COVID-19 through banknotes is further upsetting the use of paper money. This has caused shoppers to switch towards digital payments as well as the rush to obtain basic needs. Notably, banks have been working on reduced time, making cashless transactions a mainstay.
The growing need for bitcoin payments
Cryptocurrencies present their users with inherent benefits over fiat due to their unusual nature. Bitcoin was created to offer exceptionally rare benefits over other forms of payment. One of the biggest allures towards bitcoin is the independence and freedom associated with its use. Users have the freedom to spend their funds without dealing with third parties such as banks, or even the government. The popularity of Bitcoin in recent years has made a lot of people interested in opportunities for trading bitcoin. There are manual ways and automated trading apps like https://bitqt.org/ app that allow people to easily trade bitcoin.
Furthermore, the peer-to-peer nature of bitcoin makes it an exciting choice in the payment of goods and services. The bitcoin network is a P2P platform, meaning one can send funds to anybody anywhere globally, without restrictions or needing permission from anybody. Bitcoin payments are usually discrete. Crypto transactions, similar to cash transactions, are not in any way connected to the users’ identity.
BTC is not distributed by a central authority, meaning any rule cannot control their supply. Bitcoin operates under the blueprint of decentralization, which is the main reason for its invention ten years ago. Blockchain transactions are sorted out through a network of computers interconnected through the blockchain. Blockchain functions as a digital ledger and circumvents the essence of a governing body to record blockchain transactions.
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