Digital wallet technology is changing the way that merchants interact with customers across the globe. Bitcoin is one of those technologies that make location irrelevant. Bitcoin is a form of digital currency that can be transferred from one user to another without calculating currency exchanges or going through a traditional payment processor like a bank. Recently Coinbase, a Bvitcoin wallet provider, launched a “tip” button that makes micropayments to web-site owners. Some believe this is a pivotal move in the way website owners can earn money from their fan base outside the traditional methods like ads and sponsors.
Coinbase states that the button gives fans a way to make immediate and measurable contributions to website owners. The rate that websites are being paid for clicks is currently 300-bits or 10 cents. This rate can change from week to week as the value of the Bitcoin fluctuates. This can be a blessing and a curse for owners as one day they can get paid a generous amount from fans, but the next week they may not receive as much income because the Bitcoin’s value has dropped.
Thus far, one-third of orders on Coinbase have been less than $1. Despite the fluctuations in the Bitcoin rates, Coinbase creators believe that their system has an advantage over traditional payment networks, because traditional payment methods are too costly to support micropayments. So far the early adopters of micropayments have been podcasters and bloggers. Many of these websites position buttons at the bottom of the web pages which display the amount of tips paid.
Sometimes micropayment buttons display dialog boxes that give visitors the chance to use a Bitcoin address or Coinbase wallet. Bloggers are not the only ones interested in the technology though. Major companies like Square Inc. have announced an intention to accept Bitcoin transactions. Plus Bitcoin itself is also expanding into online marketplaces like Amazon and eBay Inc.
eMerchantBroker.com recognizes that the world is changing and that Bitcoin and technologies like it may be the future. That’s why the high risk merchants of the world’s best online payment processor have developed the necessary tools to manage your Bitcoin merchant account. Contact us to learn how micropayments can expand your business.