Crypto Adoption: Bitcoin (BTC) Payments to be Accepted by Two Large Retailers
Swiss-based Digitec Galaxus and Avnet will start accepting Bitcoin (BTC) payments.
In another move towards Bitcoin and crypto adoption, two large retailers announced that they will be accepting BTC payments. Swiss-based Digitec Galaxus announced its involvement with cryptocurrencies on social media:
US-based electronics retailer Avnet will start accepting BTC payments as well, powered by BitPay, the company stated in its most recent press release. Initially, the US-based electronics retailer will accept BTC, as well as Bitcoin Cash (BCH).
“As one of the largest global technology solution providers on the Fortune 500 list, Avnet is truly an innovative company that listens to the needs of their customers, as demonstrated by their decision to accept bitcoin payments,” said Sonny Singh, chief commercial officer, BitPay.
“Not only is paying with bitcoin easier and faster than with credit cards and bank wires, it is less expensive and acceptance of it is growing. I predict Avnet will attract many new blockchain-focused customers from around the world that want to take advantage of paying with bitcoin,” he added.
The rationale of Digitec was similar, stating that digital coins went well with the e-commerce model, as Swiss media reported:
“Cryptocurrencies are fascinating and could become a relevant means of payment in e-commerce. We would like to support this development,” said Digitec co-founder Oliver Herren and Chief Innovation Officer. “We wanted to do that for a long time, but the effort was too long for a long time.”
BTC payments saw a significant decline after 2016 and in 2017, as merchants abandoned the asset. The reason for this was the volatile price, as well as the rising network fees. Now, BTC fees are back below the levels of 2016, and the price has stabilized, at least in the past months. During volatile market periods, retailers recorded serious losses, particularly during the crash of BTC from highs around $20,000.
As of March 16, BTC fees fell even lower, from around $0.15 per transaction to as low as $0.05 per transaction. The reason for this is lowered traffic, as well as the effect of SegWit addresses, and the lowered number of spam transactions or moving coins between exchanges.
At the same time, newer blockchain ecosystems are arising, with even lower fees and more intuitive payment approaches, which may, in the future, result in increased adoption.