One of the main benefits Bitcoin brings to the online commerce sector is how it is by far the cheapest way to accept international payments. Keeping in mind how the popular digital currency has cross-border capabilities and operates outside of the control of banks and governments, merchants can save a lot of money by accepting Bitcoin. At the same time, they can give discounts to customers when paying in Bitcoin. But why is it so difficult to find discounts when purchasing things with digital currency?
Also read: New HSBC Outage Shows How Decentralized Bitcoin Network Is Superior
Are Merchants Looking to Give Discounts?
One of the main questions when it comes to scoring a discount while shopping is whether or not the merchant can afford to reduce prices. During the holiday season, or at special events such as Valentine’s Day, consumers expect stores to grant attractive discounts in an attempt to get people spending more money.
However, people have to keep in mind how not every retailer can grant these discounts during these special events. Especially smaller chains are already struggling to make ends meet as it is, and cutting prices is not always viable. Sometimes, retailers have to maintain the normal price regardless of holidays or special events, simply because there is not enough cash flow.
This lack of discounts can partially be blamed on the high fees associated with running a retail business these days. Not only is there staff to pay, but there are monthly bills to cover rent, electricity, buying new stock, paying suppliers, et cetera. On top of that, accepting payments is not free of charge either, as cash will require additional security and card payments are subject to rather high fees.
To many people active in the Bitcoin industry, digital currency payments seem to be the obvious solution to this problem. Keeping in mind how the sender will be responsible for the minuscule transaction fee associated with a Bitcoin transfer, the retailer can accept payments free of charge. That is until they convert the payments to fiat currency, which will usually cost them 1% in fees. All in all, this process is still much cheaper compared to traditional payment methods.
That being said, cheaper payment solutions will not automatically lead to discounts for consumers. Some retailers may decide to keep their regular prices regardless of saving on transaction costs, and turn a slightly bigger profit that way. Just because the payments are cheaper for them doesn’t mean the consumer will reap the benefits.
Even though there is no shortage of merchants accepting Bitcoin payments right now, very few of them actively offer discounts to their customers. To most, Bitcoin is just an alternative form of payment, and no reason to make consumers think twice about paying in digital currency, rather than with cash or a credit card. Until that situation changes, discounts for Bitcoin users are still far away.
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