Electronics retailer Newegg has started accepting payments in the Bitcoin virtual currency, to satisfy its tech-savvy customers. No doubt it comes with the dual benefit cost saving that also provides better international sales support.
Soren Mills, chief marketing officer of Newegg, North America said their customers have been asking for Bitcoin as a payment option for a long time and they are happy to open this payment option to them which will possibly cater to a huge number of demands.
Newegg has a partnership with BitPaya Bitcoin transaction processor and currently accepting Bitcoin payments through them.
This could help Bitcoin move towards crypto-incompressible technology with a bit of a checkered past into just another way to buy stuff. At least that is what Expedia, the travel site assumed when they initiated Bitcoin payment in June. It is also expected that Apple’s App Store will reverse a Bitcoin app ban and California will also take an immediate action to legalize alternative currencies this month.
Democratic Assemblyman Roger Dickinson, author of the California bill said, it will be impractical to ignore the growing use of cash alternatives in an era of evolving payment methods, like Amazon Coins to Starbucks Stars.
Initially Bitcoin was not accepted very easily by the consumers as it is not backed by any physical material like gold or by any country’s promise of stability. Additionally, Bitcoin also has a technological novelty which points to extra element of complication.
Bitcoin transactions are logged publicly and verified through a computationally complicated process known as a public ledger. It provides protection against an owner of bitcoins spending the same value more than once and the process of verifying those transactions is called bitcoin mining.
Newegg was already selling computing equipment to bitcoin a miner which is close to the process.
Mills said that their customers are among some of the earliest Bitcoin miners and are enthusiastic proponents of the crypto-currency, so by adopting Bitcoin as a payment method they are responding to their customers’ diverse needs in a different way.
Bitcoin’s value has risen considerably, within a year. In late 2013, a single bitcoin worth less than $100 and now it has a price near $620. Such volatility may give birth to an unpredictable mechanism to store one’s financial worth, but there is a chance that, this unevenness could diminish if Bitcoin becomes a mainstream way to pay for goods and services.
Retailers do not want to take the risk of this volatility of Bitcoin payment. Here comes BitPay. They offer instant services to the Bitcoins customers to convert it into traditional currency while carrying out a transaction, for a service charge.
Newegg in its turn, has announced on their website they take the Bitcoin exchange-rate risk, so that the customers get the best rate on the market, and which also ensures you get a payment you can count on, every time.
Newegg has also described the payment process on its site. It says, if a customer has digital wallet software installed, he or she can complete an order by clicking the “Pay with Bitcoin” button. It is also mentioned that if the customer’s digital wallet is stored in a smartphone, a QR code can be scanned on the Bitcoin Payment page to complete the transaction. And if the customer’s digital wallet is hosted on the web, the customer is supposed to click the “View Address” link to display the digital wallet address and send the amount due through Bitcoin.
Mills also stated that Newegg is also looking at the other advantages in Bitcoin dealing. It costs less than a credit-card transaction, though it was never been the only criterion for taking this step. He did not forget to include bitcoin payment support should help the company spread its business beyond North America. This will definitely boost the global expansion strategy of Newegg and at the same time it will draw attention of Newegg’s new international customers.