Major cryptocurrencies like Bitcoin [BTC] and XRP are on an adoption spree as more and more businesses and merchants open their doors to the option of using crypto-payments. Litecoin [LTC], the digital silver to Bitcoin’s gold, isn’t far behind either, with the silver coin concluding its own share of partnerships with notable organizations in different fields. The coin, and other cryptos like it, are also taking tentative steps in the payments sphere.
According to Jon Moore aka ‘Johnny Litecoin’, however, cryptocurrencies are on the verge of taking the payments sphere by storm. Moore, a popular cryptocurrency advocate, and VP at the National Merchants Association, claimed that wider adoption of cryptocurrencies would follow as consumers grow tired of the credit card surcharges levied by merchants.
In a video posted on Twitter, Moore claimed to have had “big meetings with companies, trying to get them to accept Litecoin and Bitcoin as payments”. Credit card surcharges, he said, were the biggest issue affecting the payments sphere. These surcharges were levied by merchants on credit card transactions to cover for the merchant fees imposed by credit card companies.
Moore stated that the fact that merchants were passing on the fees onto the customers in the form of surcharges was great news for the crypto community. He said that with rising surcharges, customers would be more open to using cryptocurrencies for payments, owing to their lower transaction fees. Even if the merchants were to impose a 0.5 or 1 percent surcharge on crypto-payments, these would amount to a figure which is much lower than the 4% surcharge issued on credit card transactions, he added.
This differential in surcharges and fees would give regular people the incentive to save up to 2-3% and popularize the use of cryptocurrencies for payments, giving way to a wave of mass adoption, he concluded.
High fees have been a long-standing issue for a lot of merchants recently. A few weeks ago, Kroger, the American grocery chain, abandoned VISA owing to its inefficiency and high fees. Kroger was on the lookout for another payment option that allowed goods to be made cheaper and accessible to its customers. Cryptocurrencies were being considered for the same, a report had stated.
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Jibin M George is a graduate in International Relations and Law with a growing interest in the world of cryptocurrency and blockchain technology