Lounge Lizard joins the innovative Bitcoin payment network
Lounge Lizard has become the most recent company to become “Bitcoin Ready” joining numerous other companies as part of the new wave of those who wish to deal in business transactions outside the authority of conventional banking.
Over the last month the young, upstart payment network Bitcoin has been gaining traction with consumers and businesses alike as more people have not only become interested in learning more about how the peer-to-peer technology operates but also in allowing its’ use for payment.
For many businesses, such as social game maker Zynga, Overstock.com or Lounge Lizard Worldwide, offering the use of Bitcoin as a payment option is about improving the customer experience. Why not provide a viable alternative payment for those who wish to utilize it?
Bitcoin users are a very attractive demographic from a business perspective. The typical user, in the U.S., is a tech-savvy male between 25 and 40 with above average income that lives on one of the coasts according to research by the ConvergEx Group. That market is highly desired by numerous industries so it makes sense to cater to it.
Overstock started using Bitcoin and immediately noticed use of the purchasing option with $126,000 of orders within the first 22 hours. That number, if maintained, would equate to about 4 percent of their average daily sales which is indicative of a vibrant community that not only likes the idea of the currency but is willing to spend it which will be critical to the future of Bitcoin.
The online dating site OKCUpid along with WordPress, Reddit, Virgn Galactic, eCommerce and even brick and mortar companies in New York have jumped into the Bitcoin market offering consumers the option to pay with Bitcoins; and that list is growing daily.
One of the biggest pulls for using Bitcoins as a payment option is the ease of transactions. It allows anyone to move money across borders without paying large fees whether that is wire transfer fees, credit card charges, or currency exchange fees. For many people who dislike the standard, and sometimes exorbitant, fees that traditional banks charge, this method is a welcome addition.
Companies such as Visa, MasterCard, Bank of America, Chase and Citigroup reap billions of dollars in fees each year and many consumers are simply tired of paying extra money to a third party when they want to simply buy something.
Additionally there is a time factor with some payment methods. Moving money can be slow and sometimes fraud-ridden. While a consumer might use a debit card and that money is deducted from their account, the actual payment to the merchant can clear a day later. Wire transfers take even longer and in the case of small payment amounts are uneconomic.
Finally there is the risk aspect; with Bitcoin transactions you don’t have the same amount of information attached to an account. Unlike with the recent Target data breach, a Bitcoin transaction just gives the retailer a Bitcoin address, not a wealth of personal information. Why open up access to fraud with your $20,000 account for a $20 transaction?
Welcome to Bitcoin
Bitcoin is a peer-to-peer payment system and digital currency created in 2009 and launched as open source software. It is considered a decentralized digital currency because of its lack of a bank regulator. The “digital coins” are transferred person to person on the internet.
Lounge Lizard has joined the growing number of Bitcoin friendly companies by becoming Bitcoin ready because it both makes sense from a business perspective and appeals to consumers by improving the customer experience.