If this is true is beyond anything almost 9% on fees
If bitcoin can attract a decent slice of their customer they are def. saving tons on money!
Topic: 2014-01-04 SeekingAlpha: Zynga Savings May Be Material To Earnings - page 2. (Read 1647 times)
January 05, 2014, 03:40:25 PM
January 05, 2014, 03:37:32 PM
Nice deeper analysis of the Zynga news, by Trace Mayer.
Zynga Accepts Bitcoin, And Savings May Be Material To Earnings
http://seekingalpha.com/article/1928121-Zynga-Accepts-Bitcoin-And-Savings-May-Be-Material-To-Earnings
Zynga Accepts Bitcoin, And Savings May Be Material To Earnings
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Sure, Zynga will get some great publicity out of the decision but inquisitive investors may wonder what effect, if any, could Zynga's decision to spend a few programmer hours integrating Bitcoin have on earnings. The ROI may surprise you and have you demanding your other companies jump on the Bitcoin express train.
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In 2012, Zynga had $1.2B of gross revenue. We do not know what percentage of revenue will have the Bitcoin payment method as an option so we will just assume all of it. The credit card or PayPal fee for a $5 sale would be about $0.445 or 8.9%. Assuming Zynga has the same payment method breakdown as Reddit then we can expect this effect.
Approximately $30m of annual revenue being processed by credit cards or PayPal would cost about $2.7m. Bitpay will process this amount for a flat fee of $300/month or $3,600 per year which is a cost savings of approximately 99.87%. Not bad for a few hours of a developer who is likely already on salary!
Approximately $30m of annual revenue being processed by credit cards or PayPal would cost about $2.7m. Bitpay will process this amount for a flat fee of $300/month or $3,600 per year which is a cost savings of approximately 99.87%. Not bad for a few hours of a developer who is likely already on salary!
http://seekingalpha.com/article/1928121-Zynga-Accepts-Bitcoin-And-Savings-May-Be-Material-To-Earnings
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