the era of the digital wallet
Post on 26-Jan-2017
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The Era of The Digital Wallet
By Sam Zaduk
PayPal Accepting Bitcoin
• Bitcoin accepted across the Paypal network for merchants of digital goods
• Handful of Launch Partners – BitPay, Coinbase, and
GoCoin• PayPal will earn revenue
through referral fees
The Last 24 Hours
What is a Bitcoin?• Software-based online
payment system• Payments are recorded in a
public ledger using its own unit of account – called Bitcoin
• Payments work P2P without a central repository
• “Decentralized Virtual Currency”– Crypto-currency
Digital Currency• Bitcoins can be obtained
in exchange for fiat money, products, services
• Users send and receive Bitcoins electronically for an optional transaction fee – using wallet software (Mobile devices, Web Apps, etc.)
• Format has seen growth
The Positives
• Fees are lower than 3% typically imposed by credit card processors
• Speed and low cost of transactions
• Overstock.com, Dell, Dish Network, Expedia, Newegg, NBA’s Sacramento Kings
The Negatives• Consumer Protection
Issues – Bitcoins can be stolen
(hacking)– Chargebacks are impossible– Any fees are paid by the
purchaser not the vendor• Price Volatility ( 7 times
that of Gold)• Illegal Activities / Online
Black Market
Mo’ Money Options, More Problems
• It may be awhile before you can buy and sell on eBay with Bitcoin
• Crypto-currencies acceptance could spread
• Exchange rates • Refunds would be tricky• Scenario of higher or lower
refund rates than original Bitcoin payment amount
Industry Effect• Will more payment
companies start to embrace Bitcoin or whether they will fall behind Paypal?
• Google Wallet and Apple Pay may find Bitcoin more troublesome to integrate since they only used stored credentials from credit card or debit card payments.
Work Cited
• http://online.wsj.com/articles/paypal-payments-hub-to-permit-bitcoin-payments-for-digital-goods-1411494837?KEYWORDS=bitcoin
• http://eprint.iacr.org/2012/584.pdf• http://techcrunch.com/2014/09/23/bitcoins-p
rice-skyrockets-following-paypals-hug/• http://www.forbes.com/sites/ryanmac/
2014/09/23/paypal-takes-small-step-toward-bitcoin-partners-with-cryptocurrency-processors/
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