Page 39 - gs150801
P. 39
CoverStory
Some view bitcoin and its associated Opening payment frontiers
blockchain technology as having the
potential to disrupt the existing fi- Luria and Turner believe much of the
nancial infrastructure. "We see the demand for bitcoin will come from
scope of the disruption as substantial payment applications enabling bit-
considering 20 percent of U.S. GDP is coin to offer significant benefits over Let us
generated by industries whose main alternatives, such as online payments help you
function is as a trusted third party," (especially cross-border), global re- piece together
wrote co-authors Gil Luria and Aar- mittances and micro-payments. Both
on Turner in a Bitcoin Investment analysts predict that by 2025, the bit- your perfect
Trust report for Wedbush. coin network could support $595 bil- advertising
lion in online payment volume, $744 campaign
Both Ripple Labs Inc., supported by billion in global remittances and $184 to grow you
Google Inc., and Hyperledger, ac- billion in micro-transactions.
quired in June by Digital Asset Hold- buisness.
ings, hope to improve financial insti- McDonnell, who now serves as Bit-
tution inclusion in blockchain tech- net Chief Executive Officer, agrees
nology as a potential replacement for that bitcoin will impact online pay-
legacy systems. ments, as well as enable the billions
of people without credit cards who
Mercator Advisory Group Analyst own mobile phones to transact on
Nikhil Joseph described the key dif- mobile devices. He added that as
ference between the way bitcoin and more retailers accept bitcoin online,
payment card networks operate is consumers will come to expect it in
that the former does not appoint a stores as part of the omnichannel ex-
trusted central authority to validate perience.
and facilitate payments.
"One way to think about it is that
When an issuing bank receives the technology behind the bitcoin
through a card network a payment protocol has turned the public Inter-
authorization request from a mer- net into a secure payments network
chant acquirer, it reviews the ledger without banks, without interchange,"
of accounts maintained for all its McDonnell said. "ISOs still have a
customers to determine whether the role, as do PSPs, in order to offer bit-
cardholder has sufficient funds, then coin acceptance alongside cards, di-
debits the account. rect debits and other alternative pay-
ments."
"In the case of bitcoin, all of these
private ledgers maintained by trust- That is not to say banks won't play a Customized advertising
ed central authorities are replaced role. "The conversion of the bitcoin
by a single, public global ledger also into fiat currency is done at bitcoin company and budget.
known as the blockchain," Joseph exchanges, but then we need banks
said. "The blockchain contains a his- to move that dollar or euro back to *Print (various sizes)
tory of all transactions, and the asso- the merchant's account," McDonnell
ciated public addresses (analogous to said. "That triggers ACH fees. In Eu- *Online
account numbers) since the inception rope it's SEPA. Not huge fees, but at *Video
of bitcoin. volume it can be quite interesting. In
the aggregate we have banks that are *Resource Guide
"In order for me to send some bitcoin pretty excited about the potential." (print/online/front page)
to you, all I need is my public address *Email Blasts
containing the requisite bitcoins and For card-not-present merchants – *Spotlight Partnerships
a private key to that address. I then whose card processing costs can
use my private key to sign off on a range from 250 to 400 basis points, *Bundle package
transaction that moves bitcoin from once interchange, PCI compliance, discounts
my address to yours," which lends chargeback management, fraud con-
itself to a number of payment sce- trol, gateway and other costs are Call today!
narios. factored in – digital currency is an
attractive proposition since the total 707-284-1686
transaction cost is less than 100 basis
points, McDonnell noted.
39
39
Some view bitcoin and its associated Opening payment frontiers
blockchain technology as having the
potential to disrupt the existing fi- Luria and Turner believe much of the
nancial infrastructure. "We see the demand for bitcoin will come from
scope of the disruption as substantial payment applications enabling bit-
considering 20 percent of U.S. GDP is coin to offer significant benefits over Let us
generated by industries whose main alternatives, such as online payments help you
function is as a trusted third party," (especially cross-border), global re- piece together
wrote co-authors Gil Luria and Aar- mittances and micro-payments. Both
on Turner in a Bitcoin Investment analysts predict that by 2025, the bit- your perfect
Trust report for Wedbush. coin network could support $595 bil- advertising
lion in online payment volume, $744 campaign
Both Ripple Labs Inc., supported by billion in global remittances and $184 to grow you
Google Inc., and Hyperledger, ac- billion in micro-transactions.
quired in June by Digital Asset Hold- buisness.
ings, hope to improve financial insti- McDonnell, who now serves as Bit-
tution inclusion in blockchain tech- net Chief Executive Officer, agrees
nology as a potential replacement for that bitcoin will impact online pay-
legacy systems. ments, as well as enable the billions
of people without credit cards who
Mercator Advisory Group Analyst own mobile phones to transact on
Nikhil Joseph described the key dif- mobile devices. He added that as
ference between the way bitcoin and more retailers accept bitcoin online,
payment card networks operate is consumers will come to expect it in
that the former does not appoint a stores as part of the omnichannel ex-
trusted central authority to validate perience.
and facilitate payments.
"One way to think about it is that
When an issuing bank receives the technology behind the bitcoin
through a card network a payment protocol has turned the public Inter-
authorization request from a mer- net into a secure payments network
chant acquirer, it reviews the ledger without banks, without interchange,"
of accounts maintained for all its McDonnell said. "ISOs still have a
customers to determine whether the role, as do PSPs, in order to offer bit-
cardholder has sufficient funds, then coin acceptance alongside cards, di-
debits the account. rect debits and other alternative pay-
ments."
"In the case of bitcoin, all of these
private ledgers maintained by trust- That is not to say banks won't play a Customized advertising
ed central authorities are replaced role. "The conversion of the bitcoin
by a single, public global ledger also into fiat currency is done at bitcoin company and budget.
known as the blockchain," Joseph exchanges, but then we need banks
said. "The blockchain contains a his- to move that dollar or euro back to *Print (various sizes)
tory of all transactions, and the asso- the merchant's account," McDonnell
ciated public addresses (analogous to said. "That triggers ACH fees. In Eu- *Online
account numbers) since the inception rope it's SEPA. Not huge fees, but at *Video
of bitcoin. volume it can be quite interesting. In
the aggregate we have banks that are *Resource Guide
"In order for me to send some bitcoin pretty excited about the potential." (print/online/front page)
to you, all I need is my public address *Email Blasts
containing the requisite bitcoins and For card-not-present merchants – *Spotlight Partnerships
a private key to that address. I then whose card processing costs can
use my private key to sign off on a range from 250 to 400 basis points, *Bundle package
transaction that moves bitcoin from once interchange, PCI compliance, discounts
my address to yours," which lends chargeback management, fraud con-
itself to a number of payment sce- trol, gateway and other costs are Call today!
narios. factored in – digital currency is an
attractive proposition since the total 707-284-1686
transaction cost is less than 100 basis
points, McDonnell noted.
39
39
