Bitcoin gaining traction in merchant transactions

BitPay Drives Explosive Growth in Bitcoin Commerce | Business Wire.

As the price of Bitcoin has quickly rammed the 1000 dollar level becoming highly volatile, one would expect that people would be more inclined to buy or hold on to their bitcoins for investment purposes, rather than using them as a means of payment. So it would be counter intuitive to think that people would prefer to pay with bitcoins today if they expect that their value would still go up in the future. This expectation would hamper bitcoin transactions on the demand side even if more merchants are interested in accepting payment in Bitcoins.

Other interesting facts:

Bitpay has enrolled 14,ooo merchants. It gives a rough idea of the size of the transactional POS universe for bitcoin.

Shopify to integrate Bitpay into checkout process. This can leverage further expansion of the merchant network and promote further acceptance in the retail market.

Square to discontinue its flat rate plan in Feb 2014 and offer only ad-valorem per transaction pricing. Virtual currencies becoming more attractive to merchants with lower transactional costs.

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This entry was posted in emoney, interchange fees, merchants, Virtual currencies and tagged . Bookmark the permalink.

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