According to Overstock.com, that's just not true.
Overstock.com is an online retailer that has been integrating cryptocurrency payment options for years now.
It was one of the first to accept bitcoin as a form of payment and has since added several other crypto options.
The CEO is a bit of a tech nerd and most saw the integration of crypto as more of a hobby by the idealist CEO as opposed to a sound business decision.
However, according to their latest quarterly filings, that is not entirely the case...
Crypto is better than credit cards for merchants?
According to Jonathan Johnson, one of the BOD (board of director) members, cryptocurrency payments are a much better payment method that credit cards for merchants.
Hmm, but how can that be, most in traditional finance would have you believe that crypto is neither cheaper or better for businesses than the status quo?!
According to Johnson, the credit card infrastructure is much more expensive for merchants than the crypto infrastructure.
For example, Overstock said they have over 40 employees in their credit card fraud department alone. Their main task is to oversee credit card payments and resolve any potential issues that may come up.
Crypto on the other hand has been much easier and cheaper according to Johnson.
The API of major cryptocurrency exchanges and brokerages like Coinbase enable merchants to accept cryptocurrency payments without establishing secure and expensive infrastructure.
From Johnson:
“We pay a processing fee for credit cards, and we employ about 40 people in our fraud department. That’s a cost of doing business with credit cards. When we take cryptocurrency, we have a very small transaction fee with Coinbase, much smaller than our credit card processing fee, and we have no fraud prevention department. It’s like a cash transaction. For us, that is a much cheaper way of doing business."
(Source: https://www.ccn.com/overstock-sees-120000-week-in-cryptocurrency-revenue-as-stock-surges-11/)
That sounds great and all, but does Overstock do much business in crypto?
I'm glad you asked!
Yes, yes they do!
According to Johnson, they average right around $120k worth of crypto transactions PER WEEK.
That is a signficant amount.
Overstock is likely to pave the way for other online retailers to start accepting crypto as they see it as a major cost saving tool.
I'm looking at you Amazon.
There you have it, the next time someone says there are no real world use cases for crypto as a form of payment, point em to Overstock, and probably very soon Amazon and whole host of others as well.
Stay informed my friends.
Image Source:
https://www.engadget.com/2014/01/09/overstock-accepts-bitcoin/
https://www.ccn.com/overstock-sees-120000-week-in-cryptocurrency-revenue-as-stock-surges-11/
