Topic: Bitcoin vs Traditional Payment Processors - page 4. (Read 1866 times)

Don't forget Bitcoin confirmation times are still low. Even though Bitcoin would make international shopping easier and allows for almost anybody to be able to have access, There are still some downsides to it. But I think with time, Things will get improved. Because today,  more and more people are making the shift to using digital medium of payment aka Bitcoin.

Most online shops don't accept international shopping because their credit card payment processors don't allow but with Bitcoins, I believe that it has paved the way for international shoppers to be able to buy things online just like any person and the lack of fraud there of makes the entire process smooth for both the retailer and the consumer.

With the modern technology nowadays, I will choose bitcoin as my payment processor. Internet is growing fast, and it is very likely for bitcoin to grow more in the next years, so for we can be adaptive with the changes if we choose to use it as a mode of payment.

It can be a winner for international money transfer between individuals. When a company wants to send money to another foreign company (e.g. company A wants to buy a specific car from company B, where company B is in a different country).
Company A wants to check that car physically before buying it, so they will travel to the foreign country. They inspect the car and found out that is's fine for them. So they want to pay for the car, before anyone else pops in and buy the car by cash before their payment arrives, which means e.g. 2 working days outside SEPA (in the SEPA area it's 'only' 1 working day)... I know that there's earnest money which you pay to hold that car for you but that's only good against the other buyers, but you still have to camp there in a hotel or in your car to wait for the payment to get finalized via the SWIFT or SEPA system...
So bitcoin seems to be a winner when a company wants to pay for another company...
But there's regulation, and in most of the countries, companies don't have a clear guideline where to put bitcoins when it's about book keeping. Also they don't really know  how is it possible to prove that there was a real payment (in bitcoins) and it's not something in connection with money laundry...
So companies will mostly wait for a fiat wire transfer instead of using the quick bitcoin network for international payments now... But if the countries will implement permissive regulations in connection with bitcoin (e.g. Germany in the EU), this situation can become better for the companies, not only for the individuals

For me, yes, bitcoin can beat the traditional payment system incomes to a new era or using modern technology. Yes, blockchain is struggling in the adoption, regulation of some state/companies and legality. But in the future or maybe in the next 5-8 years this is now very possible. I'm our state you can now buy bitcoin in some selected stores and vice versa. 

At present, Bitcoin is the digital currency as the medium of exchange. On the other hand, the currency of the traditional exchange is currency. I think the present-day digital age. So everyone will accept the digital system. Because it takes less time and labor.

For wire-transfer or sending money across borders, its already a winner. As a payment alternative it covers most scenarios. Something you buy online and go pick up later (or is sent to you) is already working perfectly well.

You talk about regulation, but that only covers the coins (money). Blockchain as a separate element can be used in any project without requesting authorization. But you are talking about payments, and that is an specific use which is heavily regulated (especially when it involves fiat, which most processors do).

Fiat is, after all, outside the realm of Bitcoin. Its State money.

Future depends on merchant willingness. Often, you can talk directly to a seller and ask if he/she would accept bitcoin, and chances are getting better and better everyday that in fact they do. Its often their trading platforms that won't, due to "fear" or regulation.

My mere opinion about this is that Bitcoin and other cryptocurrency will not replace these payment processors you've mentioned, they are going to adopt Bitcoin and all of the crpytocurrencies I think since soon they will realize that they could make more profits out of it. We are not yet sure when this huge mass adoptation would happen, but it will happen, we all know that.

Cryptocurrencies are the evolution we need to change this world's perspective about making this society more developed and advanced, fiats are too slow and taking to much time to process, while it is just a blink of an eye when we use cryptocurrencies.

Bitcoin or another decentralized cryptocurrency cannot replace traditional payment systems. They will closely cooperate and develop together, complementing each other with their special capabilities. Moreover, most likely, the cryptocurrency will develop and transform further, since today it has a lot of shortcomings and is far from perfect. Traditional payment systems will not disappear anywhere, together with cryptocurrency they will provide us with additional opportunities.

While Bitcoin doesn't have a physical form (intangible), it's still a valuable cryptocurrency for the whole world to use. The main issue here is the lack of scalability within the BTC blockchain which makes transactions slow and fees highly expensive. Even with these limitations, Bitcoin is still a lot cheaper and faster than traditional payment processors. It may not be known across the whole world yet, but it will as soon as governments legitimize its usage.

Right now, Bitcoin has all the odds of winning the battle against traditional payment processors like PayPal and Western Union. With the right amount of development and innovation, it could soar to new heights in terms of pricing and user adoption. We already have the Lightning Network underway, which promises to provide instant transactions and dirt cheap fees. While it's bound to become stable soon, we can enjoy other cryptocurrencies that provide such benefits (like XRP and XLM). I'm sure that people will prefer Bitcoin and other crypto on top of traditional payment processors because of their resilience, and most of all, anonymous nature (sort of).

Nonetheless, Bitcoin might never end up replacing traditional payment processors in the future, as they adapt to Blockchain technology. Considering how stable Fiat currencies have been a long time, there's no reason why people should avoid using centralized payment processors in the future. Just my thoughts

Compared to other payment methods, Bitcoin comes with lower transaction fees but actually  accepted by a very small group of users. Many people are still not aware of the existence of digital currencies also the price of bitcoin changes daily and don’t have a physical form that means it can’t be used in physical stores.

That's certainly true, mate. Bitcoin and the whole crypto ecosystem is within its early days. There's a lot of work to be done, especially in the area of scalability. Right now, the Lightning Network aims to bring a solution towards high fees and slow transaction confirmation times, but it's not ready yet for the world. Because of this, traditional payment processors will be the number one preference among individuals and businesses alike. Once the LN becomes tested enough for real-world use, then Bitcoin could take the world of payments by storm.

Still though, traditional payment processors have a greater advantage over crypto since they rely on Fiat currencies which are stable in price. That's not the case with Bitcoin and other altcoins, as prices are extremely volatile across the market. This makes them a terrible choice for daily payments, as they cannot be used as a real currency with a stable value. Which is why, we need more regulation across crypto exchanges in order to control the volatility in price for Bitcoin and other alternatives (aside from gaining more liquidity, of course).

Nonetheless, Bitcoin might never replace traditional payment processors or vice versa. The success of Bitcoin will be determined by how many people use it, and how many governments are willing to accept it as a legal payment method. Right now, traditional payment processors have been regulatory-compliant since the start, but Bitcoin is still facing issues with its legitimacy. Which is why, I believe that it may take a long time before Bitcoin becomes a real contender against traditional payment processors such as PayPal or Western Union. Just my opinion

In practicality Bitcoin is easier to use. Even when we register and make a wallet, everything is very simple.
When compared with traditional payments such as PayPal which is quite complicated in registration. And in its use, Bitcoin is easier to send to anyone's wallet as long as each user fills in the address correctly or with a QR code.

Yes, Bitcoin will soon replace these traditional payment processors in the future.

What the countries need to develop and adopt is a revolutionary payment method. The adoption of the Blockchain technology to this aspect may actually change on how people transact their payments. Like what other people mentioned, they may formulate their own blockchain or any related technology BUT nothing will ever compare or even come close to what Bitcoin has offered in the past few years.


Adoption of this technology will inevitably happen in the future but we cannot force it if countries are not capable of adapting to this technology. The first step to adoption is being widely recognized in the world. Second step would be slowly implementing the technology and acceptance; and third would be the wild-scale production and application.

Countries will think twice to let people use cryptocurrencies instead of fiat (government can influence the fiat system, but just can't influence bitcoin system, which is not acceptable for the governments....)
What governments can do is to rule the exchange between crypto and fiat. There won't be a magic moment, when most of the people in the world will enlighten in a second and will know bitcoin and will turn to bitcoin. There will be a long period when people will learn about bitcoin, will try it and in the end they will get accustomed to it...
But while this period lasts, people just don't have the chance to use bitcoin everywhere, they will have to exchange some bitcoin to fiat, to pay bills, taxes, etc...
And this is where governments can influence bitcoin (not the system, but the acceptance, the adoption of bitcoin). If they make it hard to exchange bitcoin to fiat (KYC, searching for the origin of the bitcoins and maybe force people to pay tax when they exchange bitcoin to fiat), so if they want, the governments can slow down the adoption, because it's not their interest to let people choose something else then fiat...

I think soon the time of cryptocurrency transactions will not be different from the same processes in the usual payment system

Traditional payment certainly loses because we already know that it is traditional, which means it still uses the old ways to transact. Digital payment or modern payment using Bitcoin is one of the best ways to make fast and easy transactions. It's just that the existence of Bitcoin is not widely known by people.

That could happen if all countries decide to accept bitcoin and the other coins as the new payment system method so their people can make a transaction using cryptocurrency. So far, only a few countries which accepting bitcoin and another coin for another option of the transaction but soon, I believe that we will have more countries that will approve cryptocurrency. Cryptocurrency itself still grow until now, and we are seeing many new people who will adopt cryptocurrency, and they will use cryptocurrency in their daily life.

Although cryptocurrencies are aiming traditional payments methods, it has yet not managed to take over the old system. While the digital currencies have generated significant interest, its adoption rate is low, and government support for them is nonexistent.
And, not until the government recognizes BTC as the legitimate currency, it might take a while before we see its adoption. Also, there are many factors that need to be changed in bitcoin for it to take over the traditional system.   
 

Agree. Basically Bitcoin's adoption has been hindered by its own limitations in scalability. Even worse, its prices across the market are not stable unlike Fiat. Despite this, Bitcoin's speeds and fees are much superior than most traditional payment processors known today. Still though, Bitcoin is not as easy to use as a traditional payment processor. There are some features that require a certain level of knowledge to be used thoroughly. A good example of this is multi-signature addresses and segwit. But this could be easily solved if developers come up with a user-friendly wallet which allows an average Joe to make use of said features in the simplest way possible.

One thing for sure, is that Bitcoin is unmatched when it comes to transferring large amounts of money at the lowest costs possible. Things will get better once the Lightning Network becomes stable enough for the whole mainstream world to use. With many different improvements available within the Blockchain sector, Bitcoin could outpace traditional payment processors within the not-so-distant future.

Nonetheless, it's good to have both traditional payment processors and Bitcoin as they have a lot to offer one from the other. For people who prefer to deal with Fiat, they'll go for payment processors such as PayPal and Western Union. But for others, they'll prefer Bitcoin because of its censorship-resistance and decentralized nature. Just my opinion