Bitcoin eCommerce & Bitcoin POS Systems
Executive Summary from Digital Merchant Consulting
A growing number of large companies and 30,000 mid- to small-sized firms now accept Bitcoin electronic currency as an alternative to the U.S. dollar. Among these are household names including Expedia.com, Overstock.com, Kings College, Dell Computer, eBay, Dish Network, 1-800-FLOWERS, Newegg and Sir Richard Branson’s Virgin Group. Further bolstering the Bitcoin economy, the U.S. government auctioned and sold nearly 30,000 Bitcoin with a market value of about $16 million in June, 2014.
What is Bitcoin?
Bitcoin is a decentralized electronic currency produced by an international network of computers. No bank or government controls its value or its creation; it has no central bank. The current value of all Bitcoins in the market totals about $6.45 billion (July, 2014), which increases each day as new Bitcoins are created through that network.
Bitcoin Is Ideally Suited for eCommerce
Customers find it convenient and secure. They have no need to login and expose their user ID and password, nor to enter a credit card number into new and unfamiliar websites. For those who do not have bank accounts, (about one in every 12 Americans according to Forbes Magazine),  Bitcoin provides the opportunity to purchase online. Bitcoin currency wallets are free, secure, and users cannot be surprised with an overdraft or other fees.
Vendors find that customers using Bitcoin often spend substantially more  than traditional purchases made with credit and debit cards – reportedly 30 to 50 percent more in some cases.  Because no bank or credit card company regulates the transaction between buyer and seller, merchant transaction fees fall to zero, giving vendors an opportunity to cut the cost of sales significantly. Bitcoin provides protection against fraud and charge-backs. It makes international payments fast and simple. Finally, the expense and administration involved with Payment Card Industry (PCI) data security standards compliance are moot, for there is no “payment card” involved in the transaction.
E-commerce, the “sweet spot” for Bitcoin, is expected to continue increasing as a percentage of all commerce. The U.S. Census Bureau  estimates that Internet sales accounted for more than $71 billion in the first quarter of 2014, which is a 15 percent increase from the year prior. Forecasts from eMarketer  predict worldwide electronic sales will reach $1.2 trillion in 2014, then nearly double to 2.07 trillion by 2017.
Today, with the advent of Bitcoin ATM’s  and POS systems, consumers can buy from major national retailers and even food truck vendors, making Bitcoin an ever-growing method of payment.
Digital Merchant Consulting
These e-commerce trends and the growing acceptance of Bitcoin raise the question for many CFO’s at B2B and B2C companies …
How can I accept Bitcoin?
Digital Merchant Consulting, (DMC), a division of DOSHOST.NET, provides consulting and implementation services to add a robust and secure Bitcoin payment method to any existing e-commerce website.
DMC, through its partnership with Bitpay, delivers a robust and proven solution known as an API – an application programming interface. The API seamlessly connects the services of Bitpay to your web site so with each Bitcoin transaction you receive the full value of the sale: If you charge one dollar, you receive one dollar with instant conversion to U.S. currency, with bank deposits made daily and with no transaction fees.
DMC’s solution includes …
- A payment gateway with seven ready-made libraries that scale to accommodate both domestic and international sales.
- More than 20 plug-ins that integrate with a wide range of shopping carts and e-commerce systems.
- Full functionality for mobile users working from smartphones and tablets.
- A merchant’s ability to accept Bitcoin in 150 different currencies, and to receive settlements in nine currencies via direct bank deposit, vastly simplifying international sales.
- Conversion from Bitcoin to U.S. dollars occurs instantly after each purchase to avoid the risk of exchange rate fluctuation.
- Cash from sales is transferred to your bank account daily and appears in the account after two business days. Settlements are made with as little as $20.00 in sales each day.
- Quickbooks integration allows exporting sales data from Bitpay directly into Quickbooks for subscribers to the Business and Enterprise level plans.
- For retail brick and mortar establishments a POS application accepts Bitcoin for any retail point-of-sale system that can access the Internet.
- For mobile sales reps and field service personnel, the application accepts Bitcoin payments through smartphones and tablets running Apple IOS or Android operating systems.
- Options are available to retain some or all sales revenue in Bitcoin.
In addition to three levels of service summarized below, DMC offers a free starter plan for companies wishing to test the system. The starter plan levies a one percent transaction fee on each sale. However the full-service plans outlined below charge no transaction fees. Your monthly cost is fixed and understandable, while you benefit by accepting Bitcoin as an alternative form of payment.
|$30 / month||$300 / month||Contact DMC|
|Free, instant conversion to dollars||Free, instant conversion to dollars||Free, instant conversion to dollars|
|Daily bank deposit||Daily bank deposit||Daily bank deposit|
|Retail POS application||Retail POS application||Retail POS application|
|22 eCommerce integrations||22 eCommerce integrations||22 eCommerce integrations|
|Email support||Phone & email support||Priority phone & email support|
|Up to $10,000 daily sales||Up to $100,000 daily sales||Unlimited daily sales|
|Quickbook sales integration||Quickbook sales integration|
|Dedicated account manager|
|Enterprise engineering & integration services available|
Digital Merchant Consulting has deep knowledge of eCommerce and the Bitcoin economy. Further, with years of technology experience through its parent, DOSHOST.NET, the company has substantial resources to help in most any kind of technology venture. Now, through the relationship with Bitpay, DMC is uniquely positioned to assist you in adding Bitcoin payment capabilities to your eCommerce site. We’ll provide in-depth consulting, advice and implementation services required to bring you “live” so you can begin taking advantage of this growing trend in electronic commerce. For more information, please visit www.DigitalMerchantConsulting.org, or contact us directly.