Bitcoin may replace credit cards in the future with the increasing competition in the retail industry and the reduction of transaction fees that reduce the profit margin thanks to digital currencies.
The Bitcoin Guidebook author of Ian DeMartino; “From a seller’s point of view, Bitcoin is highly advantageous over credit card companies as it does not have high transaction fees.. Credit card companies usually charge a fee of 3-4% per transaction, and the merchants pay for it themselves.. For businesses with low margins, this fee can amount to half or even more of their profits for each credit card transaction.”
Crypto.com co-founder and CEO Kris Marszalek agrees: “The banking and payments industry is highly prone to disruption.. Everyday consumers have little commitment or satisfaction to their assigned organizations. Fees are unnecessarily high and the consumer experience is rather poor. The entire credit card industry is focused on exploiting the money of customers who cannot pay their debts due to default interest, penalties and loan interest.. On the contrary, blockchain and cryptocurrencies offer a way to shift the balance of power back to consumers.. Blockchain-backed loans are fairer and more reasonable than credit card debt. And when used as a payment method, cryptocurrencies have many advantages over existing systems.. Digital means sending money globally, almost free of charge by nature.. In addition, travelers can also save up to eight percent on foreign exchange expenses while spending money abroad with cryptocurrency cards.”
“The more Bitcoin becomes stable the more it will be used”
Job.com’s partner and CVO, Arran Stewart, explains how Bitcoin will replace credit cards: Credit cards can be replaced by authenticating a wallet as simple as a fingerprint. We already use a method similar to this in Apple Pay.. This not only enables sellers to get paid for products and services much faster, but is also much safer and more efficient.. The only obstacle to this becoming a reality is the volatility of the crypto market.. This will change over time and as transaction volumes increase.”
This is bad news for companies like Visa and Master Card, which dominate the credit card payment industry, and for banks that make money through these companies.
But good news for Bitcoin investors.. Because it means that as Bitcoin payments become more widespread in daily transactions, its price will increase.
Still, Bitcoiners should not act in a hurry.. Although sellers prefer Bitcoin over credit cards, it seems difficult for buyers to give up on credit cards.. The reason for this is quite clear.. Credit cards provide the pleasure of getting something, delaying the pain we have to pay for it.. We enjoy it now, but we suffer later.
As Jonah Lehrer, author of How We Decide, explains: “Payments made with plastic cards are fundamentally changing the way we spend money, our financial decision-making.. When you pay with cash, you will have a real loss as a result of your purchase, your wallet will be lighter.. In credit cards, you make an intangible payment, so you don’t feel the negative feeling of spending money.”
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Forbes