Bitcoin payments are slowly gaining widespread acceptance, which can only be a good thing for digital currency adoption on a global scale. As more platforms make it easier for merchants to accept Bitcoin payments, we may very well have a product price war on our hands in the near future. PayStand is taking things one step further, by letting merchants accept Bitcoin payments on their iPhone, regardless of whether they are in-store or out in the field.
PayStand – Mobile Payments Made Easy
During the course of the previous year, there has been a new emerging trend in the form of mobile payments. Even though mobile payments are nothing new in developing countries – the system has been used there for many years now – it is rather uncommon in the Western world, except for SMS voting during a contest or something similar.
Ever since PayStand launched their next generation mobile application (available to iOS users only, unfortunately), the company have created the first fully-fledged mobile point of sale terminal. Other than Bitcoin payments, customers can also use traditional payment methods such as credit cards and cheques to pay the retailer.
While all of the above sounds great, in theory, it’s quite a different story in reality. By limiting this application to one mobile platform and only making it available to people living in the United States, PayStand is creating a niche market inside a niche market inside a niche market. However, the US will be a good test area to see if Bitcoin payments will have a rate of success through the PayStand application or not.
Bitcoin Vs. Credit Cards For Mobile Payments
Multiple platforms are competing to be the number 1 service when it comes to accepting credit card payments with a mobile device. But one thing all of these companies are forgetting are the incredibly high fees associated with credit card transactions. On average, a merchant will pay a 3% fee for swiping someone’s credit/debit card.
Especially when you are a small retailer processing a handful of payments per day, those percentages start adding up quickly. Bitcoin is a far better alternative than credit cards when it comes to mobile payments because of it’s low to non-existing transaction costs. Furthermore, both transactions are “confirmed” as quickly, yet with Bitcoin, you can receive the fiat currency value a lot faster.
Now that we see platforms such as PayStand, which operates on a monthly fee instead of a fee structure based on your transaction volume, accepting both Bitcoin and credit card payments, it may force credit card companies and processors to lower the transaction fees in the near future.
Seeing as how credit cards are vastly more popular and used more often, compared to Bitcoin, all across the globe as well, it will take a while before we see any changes to the current infrastructure and fee structure. But the competition is heating up in the world of mobile payments, and this story is far from over.
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