Though Coinvoice, a project from Conformal Systems, has started accepting Bitcoin and allowing businesses to be paid in Bitcoin while continuing to invoice their customers in dollars, some customers feel that the 3.99% commission rate is quite high. The current commission is quite equal to PayPal’s which charges 4.4% + $0.30 USD.
Coinvoice is providing services similar to the ones provided by PayPal; however, the major difference is that PayPal does not accept Bitcoin and there is no likelihood in the near future for the company to accept it. Customers believe that if Coinvoice wants to compete with PayPal it needs to lower the commission rate.
PayPal which has become the definitive way to pay people online and its universal popularity can be challenged by Coinvoice only when it provides lower commission. Apart from the commission rate, Coinvoice, the web’s first cash-to-Bitcoin invoicing service company, will have to provide competitive and fast services to compete with PayPal.
A Better Option for Companies and Freelancers to be paid in Bitcoin
With Coinvoice at service merchants or their customers don’t need to worry about the infrastructure necessary to conduct and process these transactions. Moreover, as Coinvoice provides merchants a safe, private, reliable and secure way for their business to receive Bitcoins, they are definitely going to benefit from it in due course.
Daniel Tobon, one of the Conformal team members claims that Coinvoice will really benefit businesses or independent contractors that want to continue to invoice their clients in dollars but want to receive in Bitcoins for the work they do. He said that Coinvoice thinks that this is a great way to lower the barrier to entry into the Bitcoin ecosystem for certain businesses.
According to some Bitcoin observers Coinvoice can be highly beneficial for the customers in the countries like Argentina where government has fixed the USD’s exchange value. Here it is often loss making for USD owners as they have to settle for the dirt cheap exchange rate when they go for exchange.
However, with Coinvoice at service companies or individuals can accept Bitcoins and exchange it with local currency. The company informs that the exchange rates will be calculated once each morning at 09:00 CDT, based on the price from the USD-based Bitcoin exchange Bitstamp.
Pro-Business Move Says Yocom-Piatt
Jacob Yocom-Piatt, CEO of Conformal Systems says that the company’s goal is to give businesses the easiest, fastest and most reliable way to receive Bitcoins. According to him businesses who want to accept Bitcoin can now do so as quickly as they can settle a regular invoice; even faster in some cases.
To contact the reporter of this story: Deepak Tiwari at firstname.lastname@example.org