Because other businesses are caring. Yes, there’s the bar in New York that is accepting Bitcoins for a helpful publicity boost, but there are plenty of retailers who are taking a genuine interest.
Why? Well, the process is easier – it doesn’t involve a bank and the transactions are processed on the same day, rather than take days.
Also, it can be cheaper. BitPay charges 1% on Bitcoin transactions, whereas credit cards will slug you 3-5%.
Bowdie Mercieca, founder of Australian online retailer UndieGuys.com.au, has accepted Bitcoin since the start-up launched in 2011, initially as an eBay shopfront.
“We use Woo Commerce, a plug-in that’s based on WordPress,” he tells StartupSmart.
“The buyer chooses the option of Bitcoin, it works out the exchange rate and the transaction is processed.”
“In terms of the process, it’s similar to bank transfer, perhaps a little easier. It takes time to install the plug-in, but it’s very seamless. Previously, the process had to be manual, but now it’s becoming more popular, a lot more software is available for retailers.”
Demand for Bitcoin payments in Australia is still small. Mercieca says he’s had just five purchases using Bitcoins, most of them from the US.
But there are other benefits – by being listed on blogs as one of a fairly select group of retailers taking Bitcoins, UndieGuys is getting traffic, and therefore customers, that it wouldn’t otherwise have.
“With more interest, this possibly will increase – we can see incoming links from Bitcoin websites and there are lots of enquiries about how it works,” Mercieca says.
But he adds: “I initially added it because my background is IT and I was interested in the concept of it. At the moment, it’s still a bit technical. Most retailers probably won’t consider it until it goes fully mainstream.”
The fact that Bitcoin’s value has rocketed in recent months does little to dispel the theory that it is little more than an investment commodity, rather than mainstream currency alternative for the masses.
But even if Bitcoin is a bubble set to burst, the idea behind it should pose a few interesting questions for start-ups who process payments.
What charges are you paying for your transactions? Are you really getting a fair deal? How can you reduce these overheads? And should you be thinking a bit more laterally than just going to your bank?
Ultimately, Bitcoin’s legacy may be to help small businesses think a little more about what moving money around actually costs them.
