Bitcoin is gradually catching up as one of the payment options along with conventional credit and debit card payments. It is on the verge of going mainstream and we can expect it to become quite common in the coming days. Bitcoin comes with its own set of advantages as against fiat currency.
Some of the advantages offered by bitcoin over conventional payment methods include ease of transaction, negligible transaction fees and no geographical limitations. Being an easy to use currency comes with its own drawbacks. People are still experimenting with bitcoin and paying with bitcoin in their minds is not same as paying an equivalent amount in fiat currency.
A recent study conducted by Destinia, a Spanish online travel agency has proved it. According to the study, people who prefer paying with bitcoin have the tendency to spend more per transaction than their counterparts who use fiat currency. On an average, the size of bitcoin transactions vary by over $18 when compared to conventional credit card payments.
During the course of study, it was found that the bitcoin paying customers spent about $477 per transaction as against $400 by those who opted for credit card payments. According to the spokesperson for Destinia, the company has customers paying in bitcoin on an everyday basis. However, the company which has been receiving bitcoin payments for more than a year now is noticing a considerable decline in bitcoin payments lately.
Majority of bitcoin paying customers of Destinia are from Spain, Germany, Argentina and Sweden. The company attributes the reduction of bitcoin payments to increasing competition. Many online travel agencies have now started accepting bitcoin, including Expedia. Expedia currently accepts bitcoin payments for hotel bookings only. Destinia is now planning to accept bitcoin payments for low cost airplane bookings.
The drop in bitcoin prices suddenly might be another reason for decline in bitcoin transactions.
READ MORE: Bitcoin Payments Sees a Decline – Says Expedia