BitPay World’s First Zero Transaction Fee Payment Processor
[heading]BitPay World’s First Zero Transaction Fee Payment Processing[/heading]
According to its website, BitPay will join CoinBase as a payment processor with zero fees. Currently, Coinbase is using the model towards a merchants’ first one million sales, after which merchants will pay 1% fees. BitPay’s new model, however, asks for $30 per month per merchant, with zero additional fees. This is unprecedented in payment processing space, and will certainly send shockwaves through various payment processing spaces.
Both BitPay and Coinbase represent the world’s first zero-fee payment processors, driving home how revolutionary modern payment methods are.
This certainly must make leading credit card companies nervous, considering their 3% fees and history of high fee debacles:
In July 2012, Visa, MasterCard and several major banks agreed to pay U.S. retailers a record $7.25 billion in penalties to settle a long-lasted lawsuit alleging the card giants conspired to fix so-called “swipe fees” paid by shops and supermarkets.
Swipe fees are levied on retailers for using their cards for each transaction. The fee is deducted by the card’s issuing bank.
To be certain, the news is bullish for the Bitcoin price, and will likely not make the impact it should via mainstream financial channels.