Bitcoin in eCommerce

It is the first successful crypto coin. It was launched in 2009 as an alternative to national currencies. The main feature of Bitcoin is that it is completely virtual and decentralized so it is not subject to any Government or entity, only to P2P. 

These virtual coins are bought through a simple credit card on a 'standard' currency and are stored in the so called wallets. They can then be used to purchase products and services (provided that the seller accepts this currency) exactly equal to that it would be in euros or dollars. 

It is a subject that we could extend a lot, but the important thing from our point of view is just to have clear what we are talking about to know if we can or should apply it to an online store. 

The truth is that we start looking at it as a little more common thing. As I said, there is a relative fever on the subject and one of the obligations of online stores is to be able to adapt to users demands. If your target demands it and your product justifies it, why not offer an additional payment method? 

Advantages for ecommerce go a little beyond expanding the range of payment options as we would do with mobile payment, also has implications in terms of security, which are very valuable. This type of payments made with Bitcoins cannot be canceled which means that it limits the possibilities of fraud.

In addition to this we can say that it is more economical to accept payments using this crypto currency, which tends to have a commission around 1%, rather than making it through a virtual payment gateway of any bank. 

Therefore, we could say it makes sense, or will have it in the medium term, because the truth is that today it still lacks mass opinions. Most users do not handle Bitcoins and those who do, consider then more as an investment than as currency in everyday life.

We said that there is no issuing state behind these currency but it exists an important figure: brokers are those who manage the buying and selling among users. 

Agents such as Coinbase or Bitpay, the most popular, are at the same time the most interested in popularizing this method of payment. For this reason, they develop technical solutions that are integrated in the online stores, but also at sale points with applications prepared to pay in the stores. 

It is not obligatory to use third parties to accept payments in your store, in fact, just putting a QR on the web aiming at your wallet could simplify very much, too much I would say. That is because you are bypassing all checkout and asking the user a series of technical skills we tend to presuppose, but it does not have to be always like that. 

Little by little more eCommerce are choosing to add this functionality. Perhaps, you are surprised but not all those who have stepped forward have products in a market over value, at the end and after all, even if the price of the Bitcoin is well above $10,000 you can pay in fractions. 

From travel agencies to takeaway food. The amount and variety of goods that can be purchased is remarkable enough. 

Expedia has offered for months payment using Coinbase to carry out transactions in flights and hotels bookings and it seems it is getting consolidated. 

Since 2013 Subway, the popular fast-food company, began to accept this payment on some of its physical restaurants in Russia, Slovakia and the USA. The experience must be resulting positive because, since last year they also accept other virtual currency payment: Litecoin. 

Anyway, not all those who have got involved are satisfied with the result. Quite clear is the case of Dell, which started eagerly allowing purchasing using the crypto currency through Coinbase, but they realized that it was not used and eventually eliminated this form of payment from their options. 

The future is difficult to predict but often gives us a clue if we look at what marketplaces are doing. Amazon, long ago, bought a patent on the subject, even it owns the domain amazonbitcoin.com (currently redirected to the home of themain domain), but the truth is that it does not ends up plunge into. Is it just a defensive strategic move? Is it waiting for the market to mature? 

Everything that has to do with Bitcoin has some uncertainty. The last movement of Coinbase and its alliance with VISA may help us clarify. It would make it possible to pay with a credit card using Bitcoins as currency (or maybe not, who knows)