Bitcoin Establishing a Role in Online Payments Realm

To be clear, online Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term never existed before Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term. Previously, instructions were made online for offline settlement later, and always through intermediaries. Bitcoin is the first time consumers have truly been able to own a unique unforgeable digital asset without needing to trust that an intermediary is keeping good books and records.

Bitcoin as a means for online payment is one of its most compelling use cases. Bitcoin is the first time we have had online payments that settle directly from payer to payee. With Bitcoin, online payments can be made to and from anyone in the world faster, cheaper and with no chargebacks (chargebacks are when a payment is unilaterally reversed by the sender, and the receiver finds themselves out of pocket for the amount). Currently, there are over 100,000 merchants accepting Bitcoin (though in most cases this is somewhat of a marketing ploy as they immediately have the Bitcoins received turned into Fiat for offline settlement) and the use of the cryptocurrency has saved them millions of dollars, in credit card transaction fees and by eliminating fraud and chargebacks.

What mainly differentiates Bitcoin and the traditional means of online payment is that it is truly global. You are not subject to the whims of your third party payment processor supporting a specific country or payment network. Neither merchants nor consumers need to have bank accounts to participate, and transaction fees currently paid to bank intermediaries are no longer necessary.

One compelling use-case I can think of is a group of smart developers in the Philippines who created an addictive online game, trying to monetise it. Previously they may not have had access to a bank account, so there was no way to accept funds. Now with Bitcoin, the bank is less relevant, as they would simply accept Bitcoin into their own wallet: from anyone, anywhere in the world. Of course, until local shops accept Bitcoin, they would need a way of “cashing out” to pay for expenses and salaries, and this is already possible by using the network of village-to-village salesmen who sell cigarettes, pre-pay phone credit and Bitcoin.

Another use-case is at the consumer’s end: People living in countries that have a bad fraud reputation, such as Nigeria, are tarred by the broad-brushed approach taken by payment processors - often entire countries are blacklisted, despite the majority of consumers being honest. Honest consumers can spend Bitcoin online, as the payment is final and can’t be unwound. Merchants can be confident that they aren’t being scammed, as opposed to taking risks accepting credit card based solutions.