Bitcoin vs Traditional Payment Processors

[Reid]

Never doubted bitcoin.
It will happen.

It might be slow but with patience we might be seeing a better future rather than this newly created kind of payments.

Issues are also getting lower and so is Fudders.
They seems to get bored with what they do and just go on with their life.
Bitcoin which doesnt have a company behind it will sure emerge when trust issues pops out to those payment options companies you said.

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[gentlemand]

A merchant can't afford to accept crypto only when everyone below them wants paying in fiat. You need manufacturers, suppliers and the creators of raw materials to accept it too.

As for users there is no incentive to buy any in the first place just to shop. When you have it it's the last thing you want to spend.

[DreamStage]

(...)
it's becoming more evident that crypto will someday replace traditional payment processors like PayPal, Apple Pay, and Android Pay. Yet, Blockchain technology is still struggling with user adoption and regulatory compliance.
(...)

You are wrong thinking that way...
I would rather prefer to use PayPal for example for my direct payments with fiat. Without the need on converting my fiat into bitcoin (let's say make a deposit into BTC) and then use it for my payments as BTC.
These transacations cost me extra fee rather than using my Debit Card on Pay Pal for online payments where i have 0 fees associated with that transaction.

[Abiky]

Bitcoin like digital payment media at the moment has many advantages compared to traditional payments. There are so many benefits that can be obtained when we use Bitcoin in various financial transactions. Now the number of places that accept payments via Bitcoin has increased and this is an indicator that Bitcoin will be increasingly easy to use and apply to the various financial systems that already exist today.

Even with the rising fees as of late 2017, Bitcoin is still cheaper than traditional payment processors. Now, it's even cheaper than before because prices are cheaper, there isn't any high activity on the Blockchain, and SegWit is being used more than ever. Of course, the pioneer cryptocurrency is not scalable yet. But, with the Lightning Network, this problem is about to be solved.

Still though, Bitcoin needs adoption in order to rival common payment providers. PayPal, Western Union, MoneyGram, and VISA/Mastercard are still in the lead because they're trusted among people in the mainstream world. We've seen how convenient Android Pay and Apple Pay have been for daily payments by linking credit cards to a smartphone app. Bitcoin is this and much more, but its limitations regarding scalability and volatility is what has made many people refrain from it.

Nonetheless, I believe that Bitcoin and traditional payments will part their separate ways for years to come. They'll serve their unique purposes within the financial world, allowing people to choose from one or the other. Just my opinion

[d5000]

Even with the rising fees as of late 2017, Bitcoin is still cheaper than traditional payment processors. Now, it's even cheaper than before because prices are cheaper,

That isn't true from the customer's point of view, unfortunately.

From the merchant's point of view, yes, Bitcoin in most >$20 purchases is cheaper than credit cards (with or without Apple Pay and friends) and PayPal and the like. But the merchant, in this case, has to deal with the risk of price crashes, or use a payment processor like BitPay, which results in additional fees. The traditional way to deal with these issues is ... rise the prices. So the customer often does pay a "fee", even if it's an indirect one.

Where Bitcoin excels is for international payments. It's far cheaper than Western Union and the like, and I guess that is it's main use case (outside of trading and black markets, where Monero and other privacy coins already are leading).

[Abiky]

That isn't true from the customer's point of view, unfortunately.

From the merchant's point of view, yes, Bitcoin in most >$20 purchases is cheaper than credit cards (with or without Apple Pay and friends) and PayPal and the like. But the merchant, in this case, has to deal with the risk of price crashes, or use a payment processor like BitPay, which results in additional fees. The traditional way to deal with these issues is ... rise the prices. So the customer often does pay a "fee", even if it's an indirect one.

Where Bitcoin excels is for international payments. It's far cheaper than Western Union and the like, and I guess that is it's main use case (outside of trading and black markets, where Monero and other privacy coins already are leading).

Good point. I guess that I was seeing it the wrong way, instead of focusing on merchant's needs. In that case, traditional payment processors like PayPal and Western Union will still be the lead of most merchants worldwide. I believe that what is killing crypto is its volatility, as its unsuitable for business use. The only way I see this would work would be via stablecoins like Tether and USDCoin. They provide all the convenience of crypto, but they also provide the stability of traditional Fiat currencies like the USD and EUR.

Nonetheless, the final choice lies on the individual himself whenever he decides to choose Bitcoin or centralized payment processors like PayPal.  Which means, that both ends will survive alongside each other for a very long time. Just my opinion

[BlackFor3st]

Bitcoin cannot replace traditional payment processors if you wonder why, it's because there is a very little chance that all the countries will adapt and legalize crypto currencies in the future. Maybe around 85% is the highest percentage that other countries will legalize and start using crypto currencies in any form of payment.

Remaining 15% will be the countries who will consider crypto currrency as illegal. Though there are many countries already who supported in using blockchain but replacing the traditional payment processors will surely take time to achieve this goal.

[Abiky]

Bitcoin cannot replace traditional payment processors if you wonder why, it's because there is a very little chance that all the countries will adapt and legalize crypto currencies in the future. Maybe around 85% is the highest percentage that other countries will legalize and start using crypto currencies in any form of payment.

Remaining 15% will be the countries who will consider crypto currrency as illegal. Though there are many countries already who supported in using blockchain but replacing the traditional payment processors will surely take time to achieve this goal.

That's certainly true, mate. Unfortunately, Fiat currency is still the norm of many countries worldwide. Bitcoin can become popular as an alternative form of payment, but it can never replace Fiat. Because of this, I believe that traditional payment processors will survive in the future. Perhaps, they would adapt to Blockchain technology in order to gain the benefits of faster and cheaper transactions. Not to mention, payment processors would gain the ability to allow/deny transactions in a Blockchain of their own.

Once this happens, then they'll remain the norm of mainstream payments for a long time. Bitcoin and other cryptocurrencies would simply be used as an alternative form of money in times of emergency or desperate situations. Not even with DAG technology, has crypto been able to obtain the level of mainstream adoption as VISA or MasterCard. This could mean that it's nearly impossible to take down or replace traditional payment processors anytime soon.

Nonetheless, even if Bitcoin loses in this regard, it's still the perfect cryptocurrency for the people by the people. Just my opinion

[Marry Finch]

Why should a cryptocurrency replace existing payment systems? This will not happen anyway. The states' cash may still decrease in volume, but is unlikely to disappear in the near or even distant future. However, non-cash forms of payment are now very convenient and will simply improve in the course of competition with cryptocurrency. In general, it is expected that the cryptocurrency and non-cash money of the states will exist in parallel and, most likely, in the future we will see their combined forms of circulation.

[Spaffin]

Why should a cryptocurrency replace existing payment systems? This will not happen anyway. The states' cash may still decrease in volume, but is unlikely to disappear in the near or even distant future. However, non-cash forms of payment are now very convenient and will simply improve in the course of competition with cryptocurrency. In general, it is expected that the cryptocurrency and non-cash money of the states will exist in parallel and, most likely, in the future we will see their combined forms of circulation.

Absolutely agree with you. It is unlikely that cryptocurrency should oppose the traditional methods of cashless payments. This will not be good for the cryptoaallute. Non-cash forms of payment are forms of settlement of banking systems, and they are fully under state protection. Indeed, it would be very nice if cryptocurrency and non-cash forms of cash payments of various forms of ownership went in parallel, complementing each other’s functionality, and even better, would have a single shell.

[Abiky]

Why should a cryptocurrency replace existing payment systems? This will not happen anyway. The states' cash may still decrease in volume, but is unlikely to disappear in the near or even distant future. However, non-cash forms of payment are now very convenient and will simply improve in the course of competition with cryptocurrency. In general, it is expected that the cryptocurrency and non-cash money of the states will exist in parallel and, most likely, in the future we will see their combined forms of circulation.

There's a possibility that both crypto and Fiat will co-exist for a long time. However, with the rising popularity of Bitcoin, it's widely possible that crypto will render traditional payment processors obsolete. Of course, Fiat will always be there as it's backed by the government. But in the case of traditional payment processors like PayPal and Western Union, they may not survive in the future if they don't adapt to Blockchain technology.

People would rather stick to a system that's virtually free and speedy at the same time. Bitcoin compared to other payment systems, it's still the cheapest and fastest one in existence. While it's still facing scalability issues, the Lightning Network is being developed behind the scenes. Once it's finished, people can enjoy instant and near-free transactions around the world. In effect, this would allow many people to switch from traditional payment systems back into cryptocurrency.

Despite this, there will be many forms of payment (as you've said earlier). This means, that aside from Bitcoin, we'll continue to experience a world where people deal with Fiat, Gold, and other means. Hence, Bitcoin or crypto cannot be the only solution to everything in the world of finance. Just my thoughts

[Indrawan77]

I dont think there will be any replacement, I think both of  the payment system will exist in the future, the government won't allowed centralised payment being replaced, but the government will need to adapt with the newest technology so I believe one day they will adopt crypto payment as an option

[fitty]

It's been a decade since Bitcoin emerged as a decentralized digital currency for the people. While it's no secret that Bitcoin and other cryptocurrrencies have some drawbacks, they're still a great alternative to Fiat when it comes to making payments without a centralized entity in charge of our funds.

With latest advancements such as DAGs, smart contracts, Layer-Two scaling solutions, Dandelion Protocol, Zero Knowledge Proofs, and more, it's becoming more evident that crypto will someday replace traditional payment processors like PayPal, Apple Pay, and Android Pay. Yet, Blockchain technology is still struggling with user adoption and regulatory compliance.

Nonetheless, do you believe that there's hope for Bitcoin to beat traditional payment processors or will those same payment processors adapt to the Blockchain in the future?

I think that there's a chance that Bitcoin (and cryptos in general) have a high chance of replacing traditional forms of payment provided that they become as fast as traditional payment methods currently and have a strong community push coupled with a large-scale societal adoption, for whatever reason. I think that, while everything else can basically be up in the air for whether or not it will be useful, the blockchain technology will probably be the biggest thing to come out of the entire crypto community. I don't know if I can hope that cryptos overwhelm traditional payment mediums, but it would be a good shakeup for the economy at large. It might finally get us past the fiat system we have now and get people earning money which won't be inflated away.

Having a strong community pushing up bitcoin isnt enough at all,the government always win.If we want bitcon to replace traditional payment system we need to surrender our bitcoin technology to the government and get regulated and centralized.Or if one of the members of the government ( the high rank ones) will push through adopting bitcoin on their financial system without regulating it,

[roosbit]

It's been a decade since Bitcoin emerged as a decentralized digital currency for the people. While it's no secret that Bitcoin and other cryptocurrrencies have some drawbacks, they're still a great alternative to Fiat when it comes to making payments without a centralized entity in charge of our funds.

First in line is adoption then we have regulation as our biggest drawbacks. Surprisingly is that despite cryptos being unregulated they are still influenced by political influence, which is something I would expect to see with fiat but looks like all forms of money follow the same rules.

Blockchain technology is still struggling with user adoption and regulatory compliance.

Because the people in charge today have their Power in the money(fiat) and if it happens that people lose their grip off fiat and cryptocurrencies come in , this means there will be a change of power....which is why they try to block this digital currency at all cost!

[Marry Finch]

I am absolutely sure that in the future we will see a merger of cryptocurrency and various types of bank non-cash payment systems, since it will be very convenient in their use. Sharing them will provide an opportunity to eliminate cryptocurrency volatility when using it as a means of payment, since it will be possible to remove cryptocurrency at the rate on the day of payment, but in fact it will be possible to make calculations in fiat, which in most cases will be convenient for merchants.

[Tylev]

I am absolutely sure that in the future we will see a merger of cryptocurrency and various types of bank non-cash payment systems, since it will be very convenient in their use. Sharing them will provide an opportunity to eliminate cryptocurrency volatility when using it as a means of payment, since it will be possible to remove cryptocurrency at the rate on the day of payment, but in fact it will be possible to make calculations in fiat, which in most cases will be convenient for merchants.

Of course, in the future, the cryptocurrency and the common currency of the states will exist together. Cryptocurrency is generally not able to replace cash or non-cash money, so I would say that the cryptocurrency will adapt to the joint circulation with the national money of the states, and not vice versa. Non-cash forms of payment in ordinary currency will always exist, because they are protected and protected by states. Moreover, the conditions of cryptocurrency circulation in society will be determined by the states all the same.

[1Referee]

Despite this, there will be many forms of payment (as you've said earlier). This means, that aside from Bitcoin, we'll continue to experience a world where people deal with Fiat, Gold, and other means. Hence, Bitcoin or crypto cannot be the only solution to everything in the world of finance. Just my thoughts

The more payment options people have tho choose from, the more freedom they enjoy and the less likely it is that they can be excluded from participation in an economy.

I'm perfectly fine with Bitcoin being just an alternative to fiat. In the end, you don't want Bitcoin at this stage to be a fierce competitor to fiat, and as long as Bitcoin isn't that, governments won't consider it a threat and therefore not go in full ban mode. People can say that you can't ban Bitcoin, but it's better to not have governments ban Bitcoin to begin with, because it does significantly slow down adoption if it happens on a larger scale.

Let Bitcoin enjoy this easy ride and gain ground on a daily basis. What more can we wish for? 

[niisarearning]

It's been a decade since Bitcoin emerged as a decentralized digital currency for the people. While it's no secret that Bitcoin and other cryptocurrrencies have some drawbacks, they're still a great alternative to Fiat when it comes to making payments without a centralized entity in charge of our funds.

With latest advancements such as DAGs, smart contracts, Layer-Two scaling solutions, Dandelion Protocol, Zero Knowledge Proofs, and more, it's becoming more evident that crypto will someday replace traditional payment processors like PayPal, Apple Pay, and Android Pay. Yet, Blockchain technology is still struggling with user adoption and regulatory compliance.

Nonetheless, do you believe that there's hope for Bitcoin to beat traditional payment processors or will those same payment processors adapt to the Blockchain in the future?

Bitcoin already solved lots of problem with traditional payment system  It reduced time of transaction , processing effort also Fees while coming to cross border or remittance industry payment . Where paypal , applepay everything has to go with countries regulation policy . But bitcoin is not having any regulation . Thats the beauty of bitcoin.

[Micerker]

Bitcoin is convenient and more comfortable to use than traditional forms of payment. But if there is a large number of transactions done in a while, it will cause Bitcoin's Blockchain network to be blocked and make frozen transactions unconfirmed. This is one of Bitcoin's most significant drawbacks compared to traditional forms of payment.

[Abiky]

The more payment options people have tho choose from, the more freedom they enjoy and the less likely it is that they can be excluded from participation in an economy.

I'm perfectly fine with Bitcoin being just an alternative to fiat. In the end, you don't want Bitcoin at this stage to be a fierce competitor to fiat, and as long as Bitcoin isn't that, governments won't consider it a threat and therefore not go in full ban mode. People can say that you can't ban Bitcoin, but it's better to not have governments ban Bitcoin to begin with, because it does significantly slow down adoption if it happens on a larger scale.

Let Bitcoin enjoy this easy ride and gain ground on a daily basis. What more can we wish for? 

Good point. If Bitcoin tends to overcome traditional payment processors, then without a doubt, governments will target it at all costs. It's best to leave Bitcoin and Fiat aside, for the sake of crypto's longevity within the mainstream world. Still though, Bitcoin can prove to become a viable alternative against traditional payment processors by providing a cheaper and more efficient way to transact in the real world.

I guess that the Lightning Network will have an impact over how micropayments are made, greatly disrupting our economy in many ways. While this is true, traditional payment processors will always be in the lead because they're regulated whereas crypto is not. People will have a choice whenever they want to rely on Fiat for mainstream payments or simply Bitcoin as a store of value. Given how Fiat's ecosystem hasn't gone yet, it seems that it'll co-exist with Bitcoin and many other cryptocurrencies for a long time.

Nonetheless, the emergence of DAGs, the Lightning Network, and decentralized exchanges should make crypto better than ever before. Which means, that it could greatly rival Fiat payment systems as we know it. Just my thoughts