VISA And Mastercard Are Experiencing A More Competitive Environment With Bitcoin And Cryptos

    It seems that VISA and Mastercard will be implementing a new increase in their fees for merchants processing transactions using debit or credit cards. Users are expected to start paying more for the goods they consume.

    According to both, the Wall Street Journal and Reuters, fees will be going up in April for merchant banks. That means that companies such as JP Morgan, Citigroup or Bank of America will start to pay for larger fees.

    The Wall Street Journal says that 2.5% of the value of goods and services is used to cover transaction fees. That means that in the future, with a new increase in these fees, consumers will have to pay more for the things they buy.

    This is very positive for Bitcoin (BTC) and cryptocurrencies that offer transactions for lower fees and without any centralized authority controlling all the payments. Every single time that an individual makes a payment of $100, $2.5 go directly to pay for transaction fees to VISA and Mastercard. If the fees go up in April, users will be paying more for the goods they purchase.

    Using the Lightning Network (LN), the ultimate scaling solution for Bitcoin and Segregated Witness (SegWit), it might be possible to reduce fees and process very fast transactions. Indeed, the Bitcoin and cryptoanalyst, Kevin Rooke, mentioned that the median Bitcoin transaction fee is currently equal to $0.02.

    At the same time, users can now tip other individuals using Bitcoin thanks to the Lightning Network. With the LN, transactions can be processed in just a few seconds and it is also possible to process microtransactions. Meanwhile, VISA and Mastercard would not be able to process such small transactions, thus not allowing individuals to make small payments.

    In the future, with the expansion of virtual currencies and payment processors starting to offer services to merchants all over the world, cryptocurrencies could be a competitor for PayPal, credit and debit cards and other expensive methods to process payments.

    At the time of writing, Bitcoin is the largest digital asset in the market. It has a market cap of $63.85 billion and each Bitcoin can be purchased for $3,639.

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    Carl T
    Carl T
    Carl is a legend in cryptocurrency space for his long-storied experience, history and insights. He is a digital nomad who fell in love with bitcoin and its offspring for many years now and prides himself on delivering quality perspectives in the emerging world of crypto-assets and blockchain technology.

    [Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

    [Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer


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