Payment companies Visa and MasterCard are hiking their fee range for the US merchants to process transactions which could open the pathway for crypto adoption.
Both payment processing companies are now going to create more wedges in their relationship with US-based businesses because of the increased range of fees. Both Visa and MasterCard are the two biggest card networks in the US, and they are preparing to increase their fees in April.
The most affected of these charges will be the so-called interchange fees, which merchants pay to banks when consumers shop at their locations. The card networks also charge financial institutions for processing card payment for the merchants.
Why It is Good for Crypto-driven POS Providers?
As is obvious, the increased price is eventually passed on to the consumers. People familiar with merchant pricing suggest that about 1% to 2.5% of the price for goods and services is used to cover card fees.
However, the card companies’ loss could be Cryptocurrency’s gain. The rising fee of the companies could drive people to move away from traditional networks to digital currencies.
Crypto POS service providers like Pundi X will play an important role in this development. The company is already working with a number of merchants globally, providing their blockchain-based point-of-sale (Pundi XPOS) services.
How Pundi XPOS Works:
Recently the company has signed a partnership with HARA Token for the XPOS deployment. As the result, thousands of Pundi X devices will be installed to the forefront of global agriculture. Moreover, Pundi XPOS devices will be implemented to hundreds of emcredit, the UAE’s official credit bureau and a subsidiary of the government of Dubai, storefronts across the city to allow consumers to pay bills, school fees and for utilities using digital currency.
In 2019, they are planning to bring their payment ecosystem which includes XPASS, XPOS, and XWallet to more users across the globe. XPOS is already live in 25 countries and has partnerships with a multitude of retailers. Last year, PundiX reported that it would distribute over 100,000 POS machines in South Korea by 2021.
PundiX CEO, Zac Cheah, commented on crypto adoption at the time, saying,
“I personally believe that there is going to be a one or a few legitimate, trusted digital currencies off of the blockchain technology. And that legitimacy and trust in terms of its consumer application will have to be legitimized by a brand and a brick and mortar environment, where the consumer has trust and confidence in the company that is providing the transaction.”
Dash is another cryptocurrency that may cash-in on the opportunity. It allows users to make private and instant online payments via a secure open-source platform. Their technology could also be used for making in-store payments.
How Dashpay System Works:
Eletroneum is also worth to be mentioned, because of their instant payment system which is actually impressive and lets you pay in physical shop in seconds without waiting for the confirmations on the blockchain. Such modern developments works like catalyst for the crypto mass adoption.
How Electroneum Instant Payment System Works:
As the prices of cryptocurrencies are falling worldwide, development teams and communities are now focusing on increased user adoption as a more solid metric of success. From Bitcoin to Litecoin, Dash to PundiX and even Binance Coin, and the list of the currencies looking to grab a piece of the Visa-MasterCard payments business just keep rising.
The rising Visa and MasterCard fees for merchants works just like the catalyst for crypto-driven POS providers as the demand for their services will possibly grow even more in the near future.