Subscription Site OKCupid to Start Accepting Bitcoins as Payment

Payment processing processes and options have a real impact on bottom line profits for subscription sites selling digital content. From ACH fees to gateway

Payment processing processes and options have a real impact on bottom line profits for subscription sites selling digital content. From ACH fees to gateway restrictions to regional differences in preferences, payment processing is an important strategy to increasing revenues from online and digital subscription sales.That’s why it’s so interesting that OKCupid recently announced that it will begin accepting bitcoins for its A-list paid memberships.Bitcoin is a digital currency that can be transferred in seconds across the world with no fees, basically acting as a one-world currency. (It’s the currency equivalent of email — it bypasses domestic and international systems, thereby avoiding taxes and fees.)Bitcoin users tend to trust banks less, and thus would be good for subscription sites with distrusting markets (for example, medical marijuana business owners, who are often hounded by federal authorities while working legally within their own states). Bitcoin is enjoying a growing popularity in Europe, where the economies of Cyprus, Greece and Spain foster distrust and anxiety.Bitcoins are generated by database algorithm and users have to solve mathematical problem to get coins. Coins are physically delivered with hologram code that is used to claim bitcoin online. Currently one bitcoin in worth about $160, but the price fluctuates greatly.Since there’s no real regulating body, taxes or fees with bitcoin, there’s also less hassle for merchants, like chargebacks. But fraud is still possible, and there’s also less merchant protection. Bitcoin is obviously not a good payment processing option for all subscription websites, but it’s definitely worth exploring for those with digital products, a distrusting audience and international reach.

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