Is Bitcoin the Credit Card Killer? This Furniture Retailer Thinks

Beliani is an exclusively online European retailer and manufacturer of modern and affordable home furnishings and accessories. It started allowing people to shop using Bitcoin (  BTC  ), Ripple (  XRP  ), Ether (  ETH  ) and USD Coin (  USDC  ) in the fourth quarter of 2019, whose combined total is 1% to 2% global sales.

For the company, digital assets represent a significant untapped opportunity, given that the crypto space has a “huge” market capitalization of $ 250 billion. The main challenge was Beliani educate customers and ensure that buyers know they have the option to pay using the BTC if they wish - and to sweeten the deal, he began to give discounts to those who make a purchase using digital currency.

Many traders have been somewhat reluctant to offer BTC payments at the checkout because they are concerned about volatility. But Beliani, who uses the BitPay platform, says it hasn't been a problem. The company is sheltered from market movements because it never physically takes possession of the crypto it earns; instead, the brand is free to receive revenue in the currency of its choice.

“Big advantages”

BitPay notes that it offers some compelling benefits to traders. Credit card payments can be an expensive business, with processing companies often charging punitive fees that eat into profit margins. On the other hand, accepting cryptography is much cheaper - and chargebacks are much less likely to occur.

The company figures also suggest that consumers who pay using Bitcoin and other cryptocurrencies are new to the merchant and more likely to spend more - sometimes up to two and a half times more. As a result, retailers who make the leap to digital assets have the opportunity to attract high-spending buyers.

Buyers also benefit. Crypto is a payment option that can be used anywhere in the world - thereby reducing the costs of cross-border payments. There are also security benefits, as consumers have to provide much less sensitive information before a transaction can be completed. Bitcoin eliminates the need for card numbers - details that have all too often been compromised in devastating hacks affecting the best retailers.

The future

Beliani believes that cryptography is going in the right direction to become a primary source of payments in the next five to ten years. Indeed, we have seen a steady stream of major announcements that could help millions of consumers expose themselves to cryptocurrencies for the very first time. Facebook has put the finishing touches on its stablecoin  Libra  , while Reddit plans to distribute crypto rewards to its legion of savvy Internet users.

A Beliani spokesperson said, "Accepting Bitcoin and other cryptocurrencies opens up a whole new world of potential buyers for us." The Bitcoin is a great alternative to credit cards because it is cheaper, has no chargebacks and allows us to attract the sales of a new customer segment. “

And a BitPay spokesperson added, "The Bitcoin market is huge, valued at $ 200 billion, offering e-merchants like Beliani a huge opportunity to expand their geographic reach and customer acquisition. The ability to accept cryptographic payments allows merchants like Beliani to increase sales by attracting new customers and increasing the average value of orders. "

The success of the furniture retailer indicates that there is a lot of momentum in crypto payments - proving that the likes of Bitcoin have use cases that go beyond speculation. Gaining potential customers is the last step the industry needs to take and it will be essential to ensure that the purchasing process is as painless as possible.

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