Kiteroo.com is an online retailer of electronic products such as mobile phones, TV’s and laptops but with one major twist, they offer a discount using bitcoin as their payment method. Kiteroo offers 10% savings off all items which even include the latest iPhone X.
Bitcoin, created in 2009, is a form of digital currency. More than 100,000 businesses globally have opted to accept bitcoin as a payment method. Kiteroo is one of the first retailers to accept it as its only payment method and they have good reasons to do so.
Why does Kiteroo.com only accept the digital currency? Bitcoin breaks down invisible borders, making international transactions easier. There are virtually no fees associated to any transaction compared to conventional payment methods. It allows for businesses to ship all around the world, which is greatly beneficial for any online store.
Using bitcoin has its benefits for the retailer but how do consumers benefit from using the digital currency?
Cost savings may ultimately be the most compelling benefit for bitcoin consumers.
The cost savings on the merchant side are clear when you consider the interchange fees, assessment fees, charge back fees and false declines that merchants currently incur by using existing payment methods. Kiteroo.com passes these savings directly to the consumer as do some other merchants using bitcoin. Consumers will soon realize that unlike credit cards companies, who cause merchants to price their goods higher and pass savings back to only a subset of the consumer base (credit card holders in the form of reward points), bitcoin enables lower prices for the masses.
Kiteroo’s customers also benefit the privacy and security which comes when using bitcoin. Generally, when you pay for something online with a debit or credit card, you are giving that merchant personally identifiable information about yourself that is susceptible to theft. When a consumer uses bitcoin to pay for goods or services, they only share the public key and the amount of the payment with the merchant. There is no personally identifiable information shared that makes the consumer susceptible to identity theft.
Other well-known companies that have started to accept bitcoin include: Microsoft, Overstock.com and CheapAir.com. We hope to see bitcoin more widely accepted in the near future.