Friday, December 6, 2019

High Credit Card Surcharges Are Changing Customers Thoughts About Cryptocurrencies

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Adedamola Bada
I'm Damola, a computer engineer from Obafemi Awolowo University. A crypto enthusiast, marketer, and writer who is seeking to achieve career excellence through hard work and positive contribution to the organization that aspires for excellence. Contact me on [email protected]

The rising costs of transaction fees and surcharges that are being slowly introduced into conventional and popular payment platforms such as Visa and MasterCard are beginning to turn customers away, and it couldn’t be better news for the crypto community.

Seeking Better Alternatives

Kroger, popular US-based grocery chain just jumped off the VISA ship to seek a better alternative some weeks ago due to the inefficiency of the system and the high charges it was imposing. Kroger is one of the major faces changing ships, smaller ones have abandoned the million-large pool of VISA’s, and more might just follow suit soon.

mastercard visa

VISA is one of the biggest payment platforms in the world with hundreds of thousands of transactions being processed simultaneously, and it would rightly remain one of the biggest in its industry for the next few years—and rightly so. However, the cryptocurrency industry is proving to be offering a competitive edge over popular platforms such as VISA and MasterCard, starting from the evolution of the Lightning Network to the outstanding work that Ripple’s cross-payment platform is doing to outperform SWIFT and poaching clients from under its nose.

Cryptocurrency payment platforms are decentralized, cheap, and transparent, and the better they rapidly get, the more already established centralized platforms like VISA would lose customers.

Surcharges the Best Thing to Happen to Crypto Platforms

Jon Moore, who is popularly known as ‘Johnny Litecoin,’ has suggested that the rising surcharges on popular platforms is welcome news for the crypto community as it indirectly paves the way for future crypto domination in the payment sector. Moore, a popular cryptocurrency advocate, and VP at the National Merchants Association claimed that wider adoption of cryptocurrencies would follow as consumers grow tired of the credit card surcharges levied by merchants.

According to Moore, the 4% surcharge imposed by credit payment platforms is significantly higher than probable fees on crypto payment platforms. While you should expect some cryptocurrency payment platforms to be even free, more profit-oriented merchants in the crypto space would be charging at 0.5 per cent or 1 per cent surcharge on transactions at most, a much lesser figure than that of VISA’s and other similar platforms.

Posting a video on Twitter, Moore revealed that he had recently had a number of ‘big meetings and discussions’ with high profile institutions as Litecoin pushes to be on the same wavelength of success that Bitcoin and Ripple’s XRP is currently having through crypto payment platforms. According to him, Litecoin (LTC) would soon be having more significant breakthroughs in addition to the partnerships it had struck with different high profile organizations in recent times.

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