Bitcoin vs Traditional Payment Processors

[Astvile]

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?

There's a huge chance that this will happen, the day where we all use blockchain technology in every purchase we do in real life. Traditional payment processor and the use of blockchain will surely co-exist in the future and it will come for sure base on the development we are seeing in the blockchain technology, having them function at the same time will be a really great help.

[crossabdd]

blockchain developers have not stopped guys, they are still continuing to innovate, as you said ... still struggling to be accepted with appropriate regulations. I believe that one day Blockchain will replace the traditional payment system. it's just that at this time it hasn't reached a good agreement to be equal or higher than traditional payments. as soon as the blockchain found it. will be the number one best payment and online transaction in the world

[Mike Mayor]

They can co-exist, merchants cater to all walks of people, there will always people who will prefer a credit card and paypal even though they have Bitcoin to pay, some buyers are not comfortable buying something online that they cannot demand a chargeback in case there is an in issue and they want to escalate it, something that Cryptocurrency can't offer, it's better all options are available to protect the buyers.

Exactly. Depending on a specific person's needs, will be the form of payment to use. Because of this, it's very unlikely that either Bitcoin or traditional payment processors will dominate the world of finance. Aside from being two distinct things, they have their own unique advantages/disadvantages. People who prefer blazing fast transactions would choose traditional payment processors on top of Bitcoin. For other people, Bitcoin is an All-in-one solution for finance as it provides censorship-resistance unlike any other payment system to date. Of course, traditional payment processors still have the lead within the mainstream world because many merchants support them. But Bitcoin could also reach the same level of traditional payment processors in the future, if it continues to grow in development and innovation.

With the Lightning Network underway, Bitcoin could easily become comparable to the likes of Visa and even Mastercard. It's only a matter of time before this happens, as developers are working hard to make Bitcoin a better place. The only issue would be price volatility, but that could easily be solved via the use of a stablecoin like Tether or USD Coin.

Nonetheless, both Bitcoin and traditional payment processors will stay head-to-head for many years to come. I believe that there will be a diversity of blockchain networks, as well as, traditional payment processors that will cater through the needs of everyday users. The latter could easily adopt Blockchain technology for their own benefit if they desire. Once they make the switch, they'll be as good as Bitcoin and other cryptocurrencies within the mainstream world. Just my thoughts

Depending on where you are you might prefer cash or crypto. I still think keeping fiat is a vaiable option and can have its uses. Maybe even for nostalgia sake or to stay "old school".
You will probably want cash for places that need very fast transactions at events and fairs and markets where things are exchanged quickly. Though in the future when things pick up a little it will be easier to just simly point your camera at the qr code and add the payment like that. I say cash because most of these places like to deal with cash anyway. I use cash at these places to avoid banking fees incase I buy from various different stores. The transaction speeds will also need to be very fast then.

Yes, bitcoin will be comparable to bigger banking and credit companies. It will just be another option like any other. Already I see online stores with the bitcoin logo and payout option.

[sunsilk]

cryptocurrencies will in time replace traditional payments, it's only a matter of time. what I'm saying is blockchain-based cryptocurrencies, I'm not saying BTC, ETH or other. but cryptocurrency.  because if BTC and others that currently in the market seems difficult. I think it seems like there will born a new kind cryptocurrency that approved by the international goverment.

Most likely the stable coins that were pegged by USD or any other preferred fiat by the users? is this what you're trying to say? How can it be a difficult market if they will start adopting bitcoin as an option for their payment scheme?

I don't think that it will be difficult for these payment processors to jump on the bandwagon if the market for bitcoin is the highest. And if that kind of cryptocurrency will be launched base on your description, it will not be decentralize.

[Argoo]

Of course, cryptocurrency cannot and will not resist the current payment systems. It will either integrate into current payment systems, or will be forgotten over time. It is most likely that cryptocurrency will supplement the list of existing payment systems and will work together with them. Cryptocurrency has many revolutionary advantages over other payment systems, but there are also disadvantages. Humanity must take advantage of all payment systems and create something one and the same.

[blckhawk]

I think one thing that makes user think again before adopting cryptocurrencies is the fact that it's too volatile. But in terms of payment only, not as an investment, I strongly believe that one point in time, crypto would be more widely used than these payment systems. However, I think bitcoin would lead the race, it's much lesser of a risk and has no signs of completely crashing down unlike some altcoins.

Various online shops are already accepting bitcoin as payment since it's relatively easier and fewer fees are paid.

[putukin]

Bitcoin maybe be fast in transactions but traditional method is still more reliable in terms of stability and widely accepted,  I don't at this stage it is appropriate to make this comparison because btc has very few coverage unlike fiat, there is no point for this now because not many people have ever make transactions with btc yet.

Let's forget about coverage and just compare the reliability and trust between the two payment methods. Traditional Payment Processors are subservient to banks and controlled by centralized structures. This is not safe, I am sure that in an emergency we can become a victim of manipulation and lose our money. Bitcoin is as reliable as possible, therefore, despite less coverage and stability, I trust in the Bitcoin processor system than in the corrupt fiat one

[minersday]

bitcoin will replace all these traditional online payment processors such as Paypal, Apple pay,... soon and it won't matter if they adopt blockchain technology themselves.

I don't really think I agree with you on this. Considering the level of awareness with regards to the number of people who have heard of Bitcoin and are using it either investing in it or using it for their basic transactions, there is no way I see Bitcoin replacing traditional online payment processors. Out of the total population of the entire world, less than 1% know or have heard about Bitcoin. The remaining percentage have no idea of what bitcoin is and what it does. It might take a long period of time for Bitcoin to replace traditional online payment processors...

[Abiky]

There's a huge chance that this will happen, the day where we all use blockchain technology in every purchase we do in real life. Traditional payment processor and the use of blockchain will surely co-exist in the future and it will come for sure base on the development we are seeing in the blockchain technology, having them function at the same time will be a really great help.

Without a doubt, traditional payment processors will be able to use the same technology as Bitcoin within the not-so-distant future. As Blockchain is tested thoroughly by central banks, and corporations, we'll see it integrated into our existing financial infrastructure at a slow and steady pace. Traditional payment processors like PayPal, Visa, and Mastercard would not want to lose their position in the market by Bitcoin or any other cryptocurrency. With Blockchain's fast transaction settlement times, and lower costs, there's no reason why companies should avoid it in the first place.

Once popular payment processors like PayPal and Visa adopt Blockchain tech for their own benefit, then you could expect them to stay head-to-head against Bitcoin and other major cryptocurrencies within the mainstream world. Bitcoin may be slow and expensive nowadays, but it's still much cheaper and faster than wire transfers. Things will become even better for the pioneer cryptocurrency with the inception of the Lightning Network. With cheap and instant transactions coming soon into the BTC blockchain, more people will join the crypto cause. Traditional payment processors will see crypto as a threat to their very existence, leaving them with no choice but to join the revolution or be left behind in the dust.

Nonetheless, while Bitcoin serves to be advantageous in some ways, it won't be able to take down traditional payment processors in their entirety. The same thing happens vice versa. There will be a strict division between both camps (centralized & decentralized) leaving people with a wide array of options to choose from. This diversity will help improve our economy for sure as time goes by. Just my opinion

[JessicaVL]

I don't think that Bitcoin will oust traditional payment processors in the near future, especially as they're beginning to adapt and build blockchains of their own. With massive financial institutions like Paypal and JP Morgan making investments into blockchain start-ups and blockchain tech respectively, they're already trying to play catch up. I think it's possible that eventually traditional payment processors will fall by the wayside in favor of Bitcoin and other cryptocurrencies, but that feels like it's still a long way off. For example, using international bank transfers to buy crypto on marketplaces like Vertex, is still an incredibly popular choice - showing that traditional payment processors are often still king. 

[Youghoor]

bitcoin will replace all these traditional online payment processors such as Paypal, Apple pay,... soon and it won't matter if they adopt blockchain technology themselves. for example even if Paypal turned into a token it still wouldn't change anything about its replacement by bitcoin because bitcoin is decentralized and it also doesn't have the huge disadvantage of them which is charge back ability.

There is no doubt that Bitcoin has all the qualities to easily replace the traditional online payment methods available currently but the problem most people who don't really understand how bitcoin operates and its nature is the volatility of its price. Due to this, majority are scared to adapt using it for their transactions. And others invest in it rather than using it to pay for their transactions online.

[jarhed]

bitcoin will replace all these traditional online payment processors such as Paypal, Apple pay,... soon and it won't matter if they adopt blockchain technology themselves. for example even if Paypal turned into a token it still wouldn't change anything about its replacement by bitcoin because bitcoin is decentralized and it also doesn't have the huge disadvantage of them which is charge back ability.

There is no doubt that Bitcoin has all the qualities to easily replace the traditional online payment methods available currently but the problem most people who don't really understand how bitcoin operates and its nature is the volatility of its price. Due to this, majority are scared to adapt using it for their transactions. And others invest in it rather than using it to pay for their transactions online.

In addition, the Bitcoin network is very slow, it is not intended for micro payments now. Bitcon acts as gold in the cryptocurrency market. Payments in Bitcoins should be tangible.

[Capt00]

bitcoin will replace all these traditional online payment processors such as Paypal, Apple pay,... soon and it won't matter if they adopt blockchain technology themselves. for example even if Paypal turned into a token it still wouldn't change anything about its replacement by bitcoin because bitcoin is decentralized and it also doesn't have the huge disadvantage of them which is charge back ability.

There is no doubt that Bitcoin has all the qualities to easily replace the traditional online payment methods available currently but the problem most people who don't really understand how bitcoin operates and its nature is the volatility of its price. Due to this, majority are scared to adapt using it for their transactions. And others invest in it rather than using it to pay for their transactions online.

It is true that there still a lot of people who don't understand how bitcoin works so it is impossible now to change traditional payment processors to bitcoin but I think it is only a matter of time for this to happen. Our technologies are advancing and people now are more open to new technology thus, it is not impossible that people will adopt bitcoin and that maybe in the future will use bitcoin as mode of payment.

[MicroGuy]

bitcoin will replace all these traditional online payment processors such as Paypal, Apple pay,... soon and it won't matter if they adopt blockchain technology themselves. for example even if Paypal turned into a token it still wouldn't change anything about its replacement by bitcoin because bitcoin is decentralized and it also doesn't have the huge disadvantage of them which is charge back ability.

There is no doubt that Bitcoin has all the qualities to easily replace the traditional online payment methods available currently but the problem most people who don't really understand how bitcoin operates and its nature is the volatility of its price. Due to this, majority are scared to adapt using it for their transactions. And others invest in it rather than using it to pay for their transactions online.

In addition, the Bitcoin network is very slow, it is not intended for micro payments now. Bitcon acts as gold in the cryptocurrency market. Payments in Bitcoins should be tangible.

I'm glad you used the word "Now". Thanks Blockstream! 

[Darooghe]

Unfortunately banks have an enormous amount of power and privilege on the global stage and thus such regulation is necessary for Bitcoin, but it will beat traditional payment processors for below reasons:

1) It is more secure. No email/password combo, one time address that can basically not be traced. 2) It is faster and easier, no dealing with long forms or verification. One click, payment sent. Businesses like it because it's like getting cash instantly. I have to wait a week for CC charges to clear and 4 days for PayPal, but BTC is nearly instantaneous. 3) It is Decentralized. No worrying whether PP will lock your account and take your funds. What's yours is yours. In this vein, businesses have more say and control in how they receive their funds.

[Tylev]

I think one thing that makes user think again before adopting cryptocurrencies is the fact that it's too volatile. But in terms of payment only, not as an investment, I strongly believe that one point in time, crypto would be more widely used than these payment systems. However, I think bitcoin would lead the race, it's much lesser of a risk and has no signs of completely crashing down unlike some altcoins.

Various online shops are already accepting bitcoin as payment since it's relatively easier and fewer fees are paid.

indeed bitcoin prices are too volatile, but think about if bitcoin becomes a trusted global transaction tool.  I am sure bitcoin will become stable because the demand for transactions is also high, in fact I am sure the price will be higher than now.

If bitcoin remains decentralized, it will never become stable in price, since supply and demand in the market cannot be stable.
Bitcoin will also not be able to surpass conventional payment systems, they will exist together and complement each other with their capabilities. I do not see another alternative yet.

[Abiky]

In addition, the Bitcoin network is very slow, it is not intended for micro payments now. Bitcon acts as gold in the cryptocurrency market. Payments in Bitcoins should be tangible.

Bitcoin may be slower than traditional payment processors, but it's bound to improve over time. With the Lightning Network on the way, micropayments will be possible again due to cheaper costs and faster transaction settlement speeds. The main advantage traditional payment processors have on top of Bitcoin (aside from depending on Fiat currency which is stable), is instant transaction settlement. Once Bitcoin's Lightning Network becomes stable enough for mainstream use, you could expect the pioneer cryptocurrency to rival even the most prominent payment processors known today.

With the advancement of technology, it seems that we're progressing towards the digital era. Tangible items will be no more, as everything will exist in the Blockchain. Bitcoin has been proven to be quite a successful cryptocurrency, despite the claims of many that it's made out of "thin air". With deflationary and censorship-resistant properties, Bitcoin is the revolutionary "digital gold" most people are still not aware of. It's hoped that the Lightning Network and several other solutions would bring more people into Bitcoin, to make it bigger and stronger than ever.

Nonetheless, while at some point Bitcoin will be able to rival traditional payment processors, it'll never be able to replace them. The same thing would happen vice versa. After all, Fiat currency will continue to dominate our financial system for years to come. Which is why both Bitcoin and traditional payment processors will co-exist for the foreseeable future. Just my thoughts

[oktana]

the lightning network is not ready to handle the explosion of transactions from the use of more than half a million earth's population, will be very slow with costs rising dramatically. I am not skeptical, but the development still looks slow and takes a long time. Here the fiat payment model will continue to take a position because of the influence of the capital system that nobody wants to damage.

[teosanru]

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?

Actually traditional payment system and btc are nowhere in competition. Blockchain technology doesn't only provides a payment settlement system but also provides a modern solution of storing data over blockchain and transmit it using secure chain of blocks. It's not necessary that in future bitcoin replaces fiat but maybe fiat can get over blockchain too but just it's supply would be held by government.

[opkm1980]

I believe that there is hope for a good percentage of cryptocurrency use in a decentralized way for multiple goods and services, but there is still a long way to go and the legal aspect must also be worked on so that people and governments have full confidence in the use of cryptocurrencies.