Coinbase is now offering its merchant partners a way to incentivize bitcoin payments with a new feature that will allow businesses to extend discounts of up to 25% to consumers.
The California-based company framed the move as one that will provide merchants with a dynamic way to incentivize their customers to shift away from traditional payment methods.
As the costs of a credit or debit card transactions fall largely on the merchant - who may find themselves charging more to make up for these expenditures - a discounting feature can make it more enticing for customers to spend bitcoin.
Coinbase said in a statement:
"[Transaction] expenses are passed on to consumers in the form of higher prices for goods and services. Bitcoin significantly reduces transaction fees and costs associated with fraud and chargebacks. And now, merchants can share these savings with consumers by enabling instant discounts on orders paid in bitcoin."
How it works
Setting the discount is designed to be relatively simple for merchants.
Merchants who use Coinbase can opt to apply an automatic discount to purchases by making the change in their Merchant Settings menu.
The discount is reflected in all final prices, with customers being able to see the price reduction as they initiate the payment.
Steady growth for California startup
The discount feature is the latest development in a busy season for the bitcoin startup.
In the past few weeks, Coinbase has announced key payment processing partnerships with major Colorado-based US satellite television provider DISH Network and REEDS Jewelers, a large US-based jewelry and precious stones retailer.
The company has also begun making an effort to boost its public profile, particularly among consumers who may not be overly familiar with digital currencies.
In late May, Coinbase announced that it was embarking on a worldwide bitcoin distribution effort. At the time, the company said the goal is to give $10 worth of bitcoin to more than 20,000 students around the globe.
Merchant image via Shutterstock