Back in 2009, when the anonymous creator Satoshi Nakamoto gifted the world digital currency, people had no idea how it would grow as a widely accepted coin. The era of digitization has now opened doors for bitcoin’s use as a mode of payment. Despite the volatility component, the most significant achievement driving its popularity is its multiple use cases.
Earlier, bitcoin was treated as an investment and trading option; however, with time, crypto has now been gaining acceptability from businesses. Paying crypto in exchange for goods and services is the fastest and cheapest way to carry out transactions in a secure environment. Digital money, unlike physical cash, has lesser chances of being stolen or duplicated for illegal activities.
Tracing bitcoin’s first commercial use
As you all must be aware, crypto’s inception dates back to 2008 when Satoshi Nakamoto published a white paper; well, a significant part of history remains unheard. To understand the potential of bitcoin as a mode of payment, you need to tread back to the time when it was first used as a commercial medium.
At the time of inception, it gained less traction because people didn’t know its use or how to use it in their life. Well, the first known commercial use of bitcoin was on May 22, 2010, when two pizzas were bought at 10,000 BTC, which is pretty expensive for the present day. The transaction happened between a trader who traded 10,000 BTC and a customer. In this case, the trader bought pizzas and sent them to the customer. To date, this particular day is called Bitcoin Pizza Day.
Businesses accepting bitcoin as the payment medium
After the memorable day when bitcoin found its use in the business sector, there was no looking back as gradually; more companies encouraged its use. Here is a list of companies where you can spend your bitcoin in exchange for goods and services.
- Buy Microsoft products and services with bitcoin
Though Bill Gates has a negative outlook toward crypto, it’s strange that Microsoft was the first company to accept crypto payments in 2014. During this period, few knew about this digital currency. However, the tech company showed the world how bitcoin use is relevant in buying goods and services.
Whether purchasing games or technological products, crypto is used to exchange products. You can buy Microsoft products from laptops, computers and even top-up Xbox accounts. Next, keep bitcoin in your digital wallet when shopping for a new laptop.
- Make online payment with crypto
Some e-commerce websites and online marketplaces accept bitcoin. Shopify is one of the largest e-commerce platforms whereby big and small businesses sell products that include bitcoin in their payment system.
Another popular payment app, Square, enables customers to purchase any products and services with crypto. These online stores have opened new avenues for bitcoin holders to spend them conveniently. Businesses accepting crypto is a sign that the future of cryptocurrency is bright.
- Use bitcoin to pay broadband and phone bills
In the US, the largest telecommunication company AT&T, which monopolizes the broadband and mobile market, will begin accepting bitcoin in 2019. They allow customers to settle their bills through crypto payment; besides bitcoin, one can use other types of digital tokens.
Well, the firm doesn’t directly take crypto payment; instead, they are partnered with BitPay. If you intend to pay for your broadband bills, you must first select BitPay to proceed with the payment.
- Buy coffee through top-up loyalty cards with bitcoin
Starbucks is next on our list, though you don’t get direct access to pay for your coffee. However, topping up your loyalty card with bitcoin is possible. You need to top up the Bakkt account, a reward program in the US that enables users to earn points they can use to spend across Starbuck stores.
So, to buy your favorite coffee from Starbucks, a little effort is required, including topping up the Bakkt reward with bitcoin and then using it for purchasing coffee.
Businesses accepting bitcoin are gaining success
Cryptocurrency adoption has lately gained traction as businesses have shown a positive outlook towards crypto as a mode of payment. Many benefits a firm can achieve when they include bitcoin in their payment system.
- Low transaction fees
As bitcoin works on a decentralized financial system, eliminating third parties from transactions helps businesses curb high transaction expenses. When used as payment, the currency can cut down on transaction costs for the firm to earn more profit from selling goods and services. Small businesses with low profits must incur about 25% of credit card payment processes.
- Reaching customers worldwide
Conducting purchase activities from companies in another country poses challenges when using fiat currency or credit cards. However, this issue is addressed in crypto. Bitcoin breaks cross-border barriers and helps people interact with businesses irrespective of region. Businesses can now reach international customers by accepting digital currency payments.
- Convenience and security for customers
Crypto is minted on a digital ledger, meaning duplication is impossible, unlike fiat money, and even transactions, once done, remain recorded. Furthermore, payment information remains secure, which helps customers build trust with a business. The chances of a retailer claiming fraudulent chargebacks limits as each transaction and payment are forever kept in the digital legit and accessible to users.
Accepting digital currency as a mode of payment will help your business grow as it gives you access to a vast new customer base that is growing exponentially. If you want to transform your local business into a global one, start accepting bitcoin today.