Bitcoin awareness is on the rise in the United States, but not purely because of its disruptive potential. The math-based digital currency also has its penchant for producing attention-grabbing headlines to thank for its ever-increasing notoriety.
For example, in just the last week, bitcoin became illegal in Thailand and saw a user arrested for allegedly perpetrating a multimillion-dollar ponzi scheme.
But, while the saying “any publicity is good publicity” may apply to bitcoin at the moment, even its most avid supporters acknowledge that it needs to become more user-friendly to disrupt global economics. Put simply, for a massive shift in payments to occur, the average person needs to not only know about bitcoin, but be able to understand how to buy bitcoin.
Tradecoinz LLC is one new company seeking to bridge this gap, and it took a step toward this goal on July 29 when CoinDesk revealed that signups for Tradecoinz’ bitcoin debit card would begin on August 1.
Called the iBTCard, short for International Bitcoin Transfer Card, the new offering finds Tradecoinz vying to compete against large issuers like Visa and MasterCard for merchant and consumer attention by pairing bitcoin with a familiar payment tool.
How Does The iBTCard Work?
IBTCard functions like a traditional debit card with a few notable differences, its official website states. The plastic card, which uses bitcoin for payments instead of traditional cash, charges no monthly fees for services, and will be integrated with a number other bitcoin wallet services and exchanges.
The card is currently in the development phase and Tradecoinz is raising more funds to expedite this process. Merchants and consumers who donate to Tradecoinz will be given early access to the card. The company has not given the product a formal release date.
iBTCard For Merchants
One of the driving forces behind bitcoin’s adoption among merchants is its low processing costs. Recognizing this, iBTCard is attempting to court merchants with the incentive, but it is going one step further to encourage acceptance by integrating with existing point of sale (POS) systems.
Cameron Halter, the founder and CEO of Tradecoinz, told CoinDesk that iBTCard will charge processing fees that range from 0.5 percent to 1.25 percent of the transaction total. By lowering the cost, Tradecoinz may be providing an attractive incentive for early adopters.
“I’m totally in and I will apply for it the minute that it comes out,” comedian and bitcoin enthusiast Dan Nainan told PYMNTS.com via email. “I currently have to pay 2.5 percent to Square or PayPal when I take payment from my shows and sell merchandise at my shows. This could definitely cut my processing costs by half or more.”
The company’s merchant service will include 24/7 phone support, process subscription payments and allow for unlimited transactions. ECommerce businesses will pay a 1 percent processing fee on transactions.
Will Tradecoinz Succeed?
While Tradecoinz is entering the market with a product that could appeal to a wide market, it still faces challenges. Speaking to PYMNTS.com, Halter said its biggest obstacles will be the market’s infancy and uncertainty.
“Current bitcoin processors only need to attract merchants,” Halter said via email. “We will need to overcome the market. It is pretty obvious that the bitcoin market isn’t stable and the value can plummet at any time.”
For more on company’s business plans, read the full CoinDesk report here.
We’re always on the lookout for opportunities to partner with innovators and disruptors.
Learn More