Why are most merchants reluctant to accept electronic money?

     Bitcoin is currently in a unique position to help businesses increase revenue and reduce transaction fees payable to point-of-sale terminals. Although many businesses have begun to accept Bitcoin as payment for goods and services, many people are still reluctant to accept it. Although Bitcoin payment processing companies can help businesses convert Bitcoin into legal currency in an instant to avoid market fluctuations. So why are most merchants in the world still reluctant to handle Bitcoin payments?

     There are many factors that go into a company’s decision to accept Bitcoin. The biggest factor that influences the decision is whether the business believes that accepting Bitcoin will increase overall revenue, gaining more or equal profits from incorporating Bitcoin payments into their platform.

     Many POS systems are able to integrate Bitcoin comfortably, enjoying little or no cost transactions, but what good are these benefits if the company does not expect to generate any Bitcoin revenue?

     We imagine a company that manufactures products and sells them to retail stores. Let's name this company X. If this company is not very interested in accepting Bitcoin payments, unless the retail stores that often buy goods from X are also interested in accepting Bitcoin payments.

     Company X has no incentive to purchase materials in Bitcoin if its material suppliers also do not accept Bitcoin. A company like X that does not sell directly to consumers has little reason to use Bitcoin unless one of its major customers or suppliers is interested in using it. Lack of intention and understanding can also play a role in making decisions.

     Let's consider another business - Coffee Shop Y. Coffee Shop Y is an independently owned coffee shop that sells a variety of beverages, bagged coffee beans, and freshly ground coffee to customers. If Y has a Bitcoin POS system that can be integrated at almost zero cost, then this coffee shop will most likely accept Bitcoin payments because coffee shops always expect to increase their total revenue. Since the cost and risk are almost zero, it is easier for small shops like Y to accept Bitcoin.

     Large companies (especially large ones) are less likely to integrate Bitcoin because the costs and risks are much greater. Shareholders will certainly have something to say on the issue, which may hinder companies from choosing to accept Bitcoin. And large companies almost all have their own proprietary systems, and the cost of integrating Bitcoin will be much greater.

     Unless the company's market research analysts predict significant revenue increases over a long period of time, the opportunity cost outweighs the benefit and the money would be better spent integrating Bitcoin payments than investing it elsewhere. This is the general reason why big businesses don't accept Bitcoin.

     Accepting Bitcoin does increase overall revenue and result in fewer transaction fees, but many businesses do not expect the profits from accepting Bitcoin payments to outweigh the initial costs of implementing it, and therefore choose to spend their money elsewhere. Until consumer demand changes significantly, small online stores will continue to drive Bitcoin adoption overall.