Visa/Mastercard, fee increase… Can cryptocurrency be an alternative?

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[Blockchain Today Reporter Kim So-yeon] Credit card payment companies earn profits by charging a fee to retail stores when a transaction occurs. Can cryptocurrency be an alternative, given that two payment giants, Visa and Master, have raised fees?

On the 24th (local time), Cointelegraph cited the Wall Street Journal and reported that Visa and Master were raising some credit card payment fees from April.

Reportedly, the Wall Street Journal said, “Consumers are overkill, and credit card payment companies have charged 2% of the transaction amount as a fee. Fees are usually set by card networks such as Visa and Master. The retailer pays the fee to the bank that issued the card.”

As credit card fees increase, interest in other methods is increasing. Cryptocurrency is one of them. There is also a fee for digital assets. However, it is cheaper compared to a credit card.

Bitcoin is heavily criticized for transaction fees. Some point out that the expensive fees made Bitcoin unsuitable for use in everyday purchasing activities. However, many people point out that cryptocurrency transaction fees are lower than those incurred when paying with a debit or credit card. In addition, there are solutions that improve transaction speed instead of lowering transaction fees, such as the Bitcoin Lightning Network.

In March 2020, concerns over the spread of the corona grew, and measures to prevent the spread of the disease were implemented, leading to a major change in the global economy. In this situation, the use of credit cards far outpaced cash. In particular, in the current COVID-19 situation, as commerce using the web increases, the use of credit cards has become more active.

Cryptocurrency doesn’t need paper. It can be used online as well as between individuals. It also has other advantages, such as dedifferentiation.

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