How Bitcoin Can be the Next Revolutionary Payment Method than Credit Cards

By @preciousvsilva on
A woman stands behind a digital Bitcoin wallet during the Inside Bitcoins: The Future of Virtual Currency Conference in New York April 8, 2014. REUTERS/Lucas Jackson
IN PHOTO: A woman stands behind a digital Bitcoin wallet during the Inside Bitcoins: The Future of Virtual Currency Conference in New York April 8, 2014. REUTERS/Lucas Jackson Reuters/Lucas Jackson

Cash and credit cards are the primary modes of payment used in the world today.  However, there is a third payment platform that can revolutionalize payment methods especially when it comes to electronic payment; the bitcoin. 

According to Securities and Corporate Governance Group (SCGG), "Bitcoin is a virtual currency that can be transferred globally from person to person without a bank or intermediary."  Bitcoin supposedly provides certain advantages that should not be overlooked.

Bitcoins are generally  cheaper than using credit or debit cards.  With credit cards, there are annual fees charged to the cardholder.  On the retailer's side, the credit cards charge 2 -3% per transaction.  There is also some backlash on the retailers when it comes to credit card disputes from customers.  If acardholder,insists on refunds or reimbursement (chargebacks), it becomes an extra obstacle for the retailers. 

With using bitcoin as an online currency, there is a more direct relationship between the consumer and the retailer.  It lessens huge third party charges and fees. Comparatively, using processors like Bit-Pay or Coinbase is cheaper than dealing with credit card companies according to Business Insider. And since bitcoin transactions are final, they cannot be reversed. This eliminates the problems of chargebacks that retailers sometimes experience from purchasers who claim they never received what they bought.  As with any online activity, security is key.  If the bitcoin method can guarantee safety and protection from hackers, then this will be a very welcome instrument to all users. 

The bitcoin platform has already given credit cards are run for their money.  Globally, bitcoin transactions have already reached $89 million.  It is still a far cry from Visa's $16.5 billion and Mastercard's $9.8 billion, but it is slowly paving the way for its future as a global payment network. In reality, a very big number of the global population doesn't even know what bitcoin means.  So when the word gets out, it can only mean more transactions via Bitcoin.