Bitcoin  Best  Prac-ces:  Reshaping  the  Payment  Landscape

Maria  Sparagis   President,  DirectPayNet

@directpaynet

Upcoming  Changes  in  card  industry • EU  Commission  is  leading  to  the  ac-on  that  is  expected  to  see  costs  capped  at  0.2%  for  debit  and  0.3%  for  credit  card  transac-ons.    

• Visa  Europe,  which  with  Mastercard  dominates  the  market,  has  offered  to  reduce  by  around  50%  the  'interchange  fee'  charged  by  banks  to  a  retailer.

• As  a  result,  consumers  who  pay  off  their  monthly  bill  may  be  hit  with  an  annual  fee,  and  many  other  new  fees  will  be  added  to  consumers  to  balance  the  loss

• Canada  recently  ruled  against  imposing  interchange  caps  for  the  credit  card  networks

Bitcoin  payments  vs  credit  cards  

• Simple  check-­‐out  process • Can  be  more  anonymous • No  currency  exchange  rates/interna-onal  approval • Payments  are  final  with  no  risk  of  CBs • Easier  merchant  entry  =  more  compe--on

• Widely  accepted

• Easily  traceable  and  consumer  protec-on  programs  

• Allows  consumers  to  have  addi-onal  buying  power  outside  of  income • Quick  approval  -mes

Bitcoin  payments  vs  credit  cards • Longer  transac-on  approval  -me  (possibility  of  double  spend) • Vola-le  exchange  rates • Not  widely  accepted  so  likely  need  to  convert  to  fiat • No  recurring  payment  possibility

• Long  applica-on  process  for  merchants • Currency  and  market  restric-ons   • Barriers  to  entry  in  certain  markets • Merchants  subject  to  reserves  &  high  fees • Long  checkout  and  conversion  loss

Challenges  ahead…

• Making  BTC  more  readily  available  and  lower  exchange  fees • Using  CC  to  buy  BTC  in  bulk  not  a  viable  op-on • Government  regula-ons  will  be  different  across  the  world  for  digital  currencies

• Ge^ng  BTC  out  of  the  “grey”  area  of  commerce  

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