bitcoin merchant on-ramp presentation inside bitcoins nyc
DESCRIPTION
GoCoin Founder and CEO Steve Beauregard outlines the pros and cons of merchants accepting digital currencies such as Bitcoin, Litecoin and Dogecoin as a payment method. This deck also provides the step-by-step process and important consideration for merchants before they will be able to increase sales with this revolutionary new payment method.TRANSCRIPT
BITCOIN MERCHANT ON-RAMP
Steve Beauregard
Steve Beauregard, Founder & CEO
FIAT ANDREAL
CURRENCY
CENTRALIZED DIGITAL
CURRENCY DIGITAL
CURRENCY
Amazon Coins
Peercoin
Ripple
(MintChip)
(Auroracoin)
Bitcoin
Litecoin
Dogecoin
Worldcoin
NXT
DECENTRALIZED
Steve Beauregard, Founder & CEO
DISTRIBUTED CENTRALIZED DECENTRALIZED
Steve Beauregard, Founder & CEO
HYPE GOOD & BAD MAKES HEADLINES
CRYPTO CURRENCIES
BITCOIN HAS EVOLVED BEYOND ILLICIT USES SUCH AS “SILK ROAD” AND EARLY
FAILURES LIKE “MT. GOX, BIPS, AND OTHERS” THAT WERE
ROBBED OR MISMANAGED
Steve Beauregard, Founder & CEO
Steve Beauregard, Founder & CEO
WHAT SCARES MERCHANTS AWAY?
• PRICE VOLATILITY• LIQUIDITY CONCERNS• REPUTATION RISK• SECURITY RISK• SCALABILITY• OPERATIONAL IMPACT • SUPPORTABILITY• CANNIBALIZE EXISTING SALES?• FEAR THE UNKNOWN ! ! !
I BELIEVE IN HONEST MONEY:
GOLD, SILVER &
BITCOIN
Steve Beauregard, Founder & CEO
F.O.M.O. FUELS ADOPTION
THE ONLY FEAR MERCHANTS SHOULD HAVE IS F.O.M.O. “FEAR OF MISSING OUT”
WHAT ENCOURAGES ADOPTION?
• unstable fiat currencies• smartphone penetration• payment friction• long remittance lines• coin ATM machines• online & retail merchants• high transaction fees of alternatives
WHAT IS DRIVING ADOPTION?
The CROWD is disrupting established incumbents
peer-to-peer
THE FUTURE OF TRANSACTION
DIGITAL CURRENCY WILL DO FOR
FINANCIAL TRANSACTIONS
WHAT EMAIL DID FOR
COMMUNICATION
CREDIT CARDS ARE TARGETS FOR FRAUD
The major card networks are
pushing payment companies to upgrade to
EMV or
“chip card” compatible points of
sale by 2015.
NO CREDIT CARDNO LOVE ! ! !
Steve Beauregard, Founder & CEO
CONSUMERS SHOULD BE REWARDED FOR SHOPPING … NOT CHARGED MORE TO OFFSET EXPENSIVE CHARGE-BACKS.
SHOPPING SITES VICTIMIZED & GAMED
MERCHANT CASE STUDIES
800 orders in 24 hours
$130K net new customers
$500,000 orders in 1st week
83,683 daily transactions (Nov. 2013)
5% of all orders are
with Bitcoin better for
Bitcoin Credit Card PayPal
0% 2.7% 2.7% FRAUD
Steve Beauregard, Founder & CEO
NO MIDDLE MAN NO FRICTIONWON’T ACCEPT RECURRING CHARGESLARGER AVERAGE ORDER VALUESPAY AS YOU GOBITCOIN STORED VALUE ALT-COINS = TRANSACTIONSUNIQUE BUNDLING OPPORTUNITIES
Steve Beauregard, Founder & CEO
BY 2015, MOBILE SHOPPING WILL ACCOUNT FOR $163 BILLION IN SALES WORLDWIDE.
BITCOIN IS EXPECTED TO GROW AS MOBILE PAYMENT TRANSACTIONS RISE!
GLOBAL CONSUMER MOBILE SHOPPING
Steve Beauregard, Founder & CEO
1/3 OF KENYANS ALREADY HAVE A BITCOIN WALLET
REMITTANCE IS KENYA’S 4TH
LARGEST SOURCE OF FOREIGN EXCHANGE
OPPORTUNITY EMERGING COUNTRIES
93% HOUSEHOLDS OWN MOBILE
CONSUMER PROTECTION
Account for the interests and needs of consumers,
particularly in developing countries
DIGITAL MONEY IS INFORMATIONEXCHANGE VALUE
SECURITY PEER-TO-PEER
TRUST EXISTS WITH TRANSPARENCY
WHAT STEPS DO I TAKE TO ACCEPT COINS?
1. Review Your Checkout Process– Shopping Cart Plug-in, Gateway or Custom– Hosted vs. whitelabel Integration– Simple Button or URL link to Form
2. Signup for a merchant account3. Upload company KYC documents4. Select currencies Bitcoin, Litecoin, Dogecoin5. Enter bank routing or wire details6. Determine Digital Currency / Fiat Splits7. Test and GO Live
SHOPPING CART PLUG-IN EXAMPLE
FORMS CHECKOUT EXAMPLE
HOSTED INVOICE EXAMPLE
MERCHANT DASHBOARD
TRANSACTION HISTORY
CREATING FORMS OR DONATION BUTTONS
HOW DOES THIS AFFECT OPERATIONS?
1. Unique Payment Differences– Under & over payments– Non payments & double payments– Paid to wrong address
2. Returns and refunds3. Support desks need training 4. Dashboard Integration5. Must be very transparent – Enthusiast demand
it
WHAT ABOUT THE IRS TAX GUIDANCE?
1. Bitcoin is property and subject to ST & LTCG2. Consumer must now track basis of coins3. What companies will solve this problem?4. What about coins held by merchants?5. What will be the impact to shopping?6. What about international purchases
Steve Beauregard, Founder & CEO
BITCOIN: MERCHANT ON-RAMP
QUESTIONS
?
