Very recently Overstock has announced they are going to offer their shoppers a new payment option by which henceforth they will be able to pay for their purchases with bitcoin the virtual currency. Eventually they are the first U.S. e-retailer taking a step like that.
Overstock.com chairman and CEO Patrick M. Byrne said Overstock is excited to mark its name as the first major online shopping retailer to accept bitcoin, the digital currency which will be an important part of the future. In this new system the customers can shop the Overstock.com website for any of the over 1 million products available, including furniture, rugs, electronics and jewelry by using bitcoin. Though the other payment choices like Visa, MasterCard and PayPal will also be there along with Bitcoin.
According to the Top 500 Guide Overstock already accepts payments via eBay Inc.’s PayPal and Bill Me Later, Google Wallet and Amazon Checkout, , along with major credit and debit cards. Now on, bitcoin also will be included as a payment option to U.S. customers only. They also have a plan to make it internationally acceptable mode of payment in the future.
Coinbase.com, a bitcoin wallet and payments company based in San Francisco, is given the charge to process the retailer’s bitcoin payments and handle the currency’s conversion into U.S. dollars. Coin base claimed bitcoin will be suitable for online transactions without any transaction fees at the same time it will be effective for international customers also.
How it will work
Bitcoin the digital currency is claimed to be an extremely modern concept which will virtually bring a revolution in the mode of transaction and payment. It will be the worlds most widely used cryptocurrency. Individuals and businesses both will enjoy the advantage of exchanging it online. The dollar value of bitcoin may fluctuate on daily basis. So far the creators of the Bitcoin system have not come up publicly, though they have published papers explaining details about how the currency can be created with an idea that the total number of Bitcoins in circulation will always be in a limit of 21 million.
Overstock.com is extremely hopeful about the future bitcoin. They have an initial assessment that about 2% of its web sales will be done through bitcoin. They have also announced that within the first 24 hours of accepting the digital currency; they have got a remarkable feedback of shoppers placing 840 orders using it. This is equal to $130,000 in revenue. Overstock is also quite hopeful that other online companies will have to follow them soon.