South African grocery chain Pick n Pay has conducted what it terms a successful test of allowing people to pay for purchases with Bitcoin.
The retailer, together with tech companies Electrum and Luno, piloted letting staff pay for groceries via Bitcoin at its head office in Cape Town, according to fin24.com. Richard van Rensburg, Pick n Pay’s deputy CEO, told the website:
“We designed a process from user registration, tender acceptance at point of sale to funds authorisation, currency exchange in real time during the transaction and instant payment settlement.”
Cape Town-based software company Electrum helped set up the system to process the payments. In a blog post on its website, the company stated:
“The checkout process is as simple as scanning a QR code using a Bitcoin wallet app on the customer’s smartphone.”
The video above shows more detail to the process and how the pilot program, which is no longer active, worked.
On a day when high-ranking officials of world-class financial firms still are referring to Bitcoin’s value as a “bubble,” this story illustrates why the Bitcoin Coaches believe Bitcoin is not only here to stay, but will continue to grow in value. It can be used anywhere in the world, and people the world over see its value.
When China announced it would shut down Bitcoin exchanges that operate in that country, Bitcoin’s price plummeted as many Chinese who held Bitcoin sold off as quickly as they could. But the price has stabilized, and is creeping back upward. Even with one of the world’s largest economies blocked from participating by its government, Bitcoin holders realize the value is long-term, as more and more of the world understands and adopts it.
Other examples of the emergence of Bitcoin being accepted as payment just this week are Dubai landlords accepting it for rent payments , the purchase of a home in Texas, a Bitcoin shirt store and a jeweler in the UK.
In the fin24.com story, Pick n Pay’s Van Rensburg described the cryptocurrency as a “game changer for the retail industry.” If that is so, and the Bitcoin Coaches believe it is, Bitcoin will continue to grow in prominence and value, as more and more people worldwide want to possess it. In fact, some theorize that there will be a point in the future when enough people realize the value of Bitcoin and that they don’t have any, a rush to trade “fiat currency” for Bitcoin called “hyperbitcoinization” could occur. Any time demand skyrockets, so does price.
From our recently released third edition of “Bitcoin Decoded,” the Amazon best-seller:
As more people are shopping online, it is completely within the realm of possibility that companies like mega-retailers such as eBay, Amazon, Walmart, Best Buy and others might accept it.
“Bitcoin may become another form of payment, just like MasterCard or Visa,” the book says. “Why would a business owner be interested in that? Well, the transaction fees they have to pay to convert the transaction into their currency are much less. It is only 1 percent, compared to credit card transaction fees of at least two or three times that.
“Why is it less? It is a lot harder to commit fraud with Bitcoin. It is much more difficult to steal a Bitcoin than to steal a credit card number.
“Other advantages to businesses include the clearing process back to local currency does not take as long. The clearing process to receive money on Visa or MasterCard for a merchant can be 35 days. The clearing process to receive your money with Bitcoin is about two days. The result is that it speeds up cash flow. So the adoption will be pushed along by more people hearing about Bitcoin’s advantages through education and word of mouth.”
If you have Bitcoin, hold on to it. If you don’t have it yet and want some, visit our “quick start” guide.