South Africa's online marketplace bidorbuy.co.za has partnered with BitX, a Singapore-based Bitcoin platform, to introduce the virtual currency as a payment method.
Bidorbuy is an English-language e-commerce Web site based on an Internet auction and online marketplace model allowing individuals and businesses to trade with each other.
The company believes the partnership makes it easy for bidorbuy sellers to accept payments from millions of international Bitcoin users.
According to LocalBitcoins.com, a marketplace for trading Bitcoins in SA for cash or online payments, LocalBitcoins reached a weekly volume of R12 million in February.
During the Blockchain and Bitcoin Africa Conference held recently in Johannesburg, most speakers said Bitcoin adoption is growing rapidly.
"We believe it is important to provide our buyers and sellers with a choice of payment methods," says Jaco Jonker, bidorbuy CEO. "Bitcoins are convenient and easy to use and although relatively new, the virtual currency has a lot of growth potential. Our partnership with BitX is an integral part of our efforts to always offer the latest, innovative solutions to our users."
"We're excited to support bidorbuy's aim to make their service accessible to more African and international customers and to be on the leading-edge of innovation," says Marcus Swanepoel, BitX CEO. "This integration is also a big milestone in terms of opening up the wider Bitcoin ecosystem in Africa, and should have a strong positive effect on the broader industry."
During checkout, buyers on bidorbuy can select the Bitcoin payment method, alongside other payment methods enabled by the seller. BitX then provides the buyer with a unique Bitcoin wallet address and the real-time exchange rate, which is guaranteed for 10 minutes.
The buyer and seller both get immediate notification of a successful payment and the funds instantly get converted from Bitcoin to rand, which the seller then receives in their bidorbuy account.
The products on bidorbuy will still be listed in rand and sellers will receive the appropriate rand amount, regardless of the existing Bitcoin exchange rate.
"Bitcoin has the potential to grow and become a truly universal digital currency as more and more people become aware of it, get accustomed to it and start using it," says Jonker. This partnership between BitX and bidorbuy plays an important part in popularising and spreading Bitcoin in South Africa and on the African continent."
"As more people use and accept Bitcoin, it creates positive feedback loops for usage and trust, which helps grow the industry. At some point, we believe it will hit a critical mass that will cause growth to become exponential," says Werner van Rooyen, head of business development and growth at BitX.
Charles Elliman, head of business development at PayU EMEA, says: "As with any new technology, but especially for matters related to finance, it takes time for people to develop trust. In this case, trust in the cryptocurrency, and in companies that provide Bitcoin services.
"For South Africa to become a catalyst for adoption in the region, South African e-commerce adoption needs to start uptrending closer to that of Asia, and for service providers to help educate people and make the overall customer experience better, all within the right regulatory frameworks."
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