Bitcoin is leading the disruption in the payment industry
The cryptocurrency Bitcoin is currently at a point at which it can significantly start to disrupt the leading payment industry. The Historically conservative and non-experimental, payment industry always appeared to be the laggard for any new forms of technology. But looking at all the latest developments, and especially at those of Bitcoins, we can now see that this is no longer the case. Something big is about to happen.
PayPal’s plan to revolutionize the payment industry
PayPal is taking its first steps into integrating Bitcoin into its payment infrastructure. However, attracting more consumers is not the reason why PayPal is interested in this strategic step. It is much more interested in a technical expansion, because it wants to become a fully peer-to-peer mobile application. An application that does not requires permission from legacy transaction carriers. The result would be global remittances with low fees and, as a cherry on the cake, it can integrate merchants who will no longer be disallowed, due to charge-back and fraud risks, or because they are not on the map for MasterCard, PayPal or Visa. These are nice benefits, but there are also some problems that Paypal has to overcome.
Short term problems
Integrating the decentralized cryptocurrency Bitcoin into the intermediary PayPal
can cause some short term problems. There are some competitors, like for example Bitpay, which offers transaction rates that are significantly lower than those of PayPal. Bitpay’s transaction rates, together with the first-mover advantage, create some risks for PayPal. Also, Bitcoin users could lose the feeling of privacy, when an intermediary as PayPal connects itself to the currency.
But PayPal, and with them other companies, have to adapt to the new developments in the payment industry. Otherwise Bitcoin will eventually outgrow them.
The benefits for online design companies like Logo BKK
When I look at my own business, I can conclude that Bitcoin is offering me a convenient way to shift funds around into different regions and countries. Bitcoin is also a great solution for the poor payment gateways in Asia, where my online design business, Logo BKK, is currently active. Even though the currency is not very stable at the moment, I strongly believe that it will stabilize in the long run. Therefore, I encourage all my clients to use Bitcoin. Other design companies have followed the same path. Many of them already accept Bitcoins as an approved payment method.
Benefits for other online companies
Not only online design companies like Logo BKK will benefit from the Bitcoin system.
It also proves to be a convenient payment method for many other online workers, like for example copywriters and online marketers. A lot of them work with clients from all over the world, and as a result, they often struggle to find a sufficient payment method that is not too high in costs, in terms of transaction fees or unfavorable exchange rates.
Cryptocurrency is the future
Cryptocurrency is the future. But its future might not only depend on Bitcoins. Other currencies can become equally important for the development of alternative payment methods. However, for now, I will stimulate the use of Bitcoins, because at this moment, it is the best decentralized currency in the world. Maybe in the future, PayPal will be able to introduce a cryptocurrency of its own. One that might take the next lead in cryptocurrency payments. No matter what these future developments will be, there is one thing that we already know for sure; cryptocurrencies are here to stay, and they will revolutionize the way we handle money transactions.