Retailers have begun accepting bitcoin in exchange for their goods. Overstock.com offers clothing, Expedia.com offers flight booking, and now Yamada Denki, one of the largest Japanese electronics retailers will provide new devices for bitcoin.
Yamada Denki made this announcement shortly after they partnered with BitFlyer, one of Japan’s largest and most regulated bitcoin exchanges. BitFlyer recently expanded into operation within the United States, and began operating within the EU as of Jan. 23rd, according to a press release.
The partnership between BitFlyer and Yamada Denki is intended to diversify the options customers have in using the respective platforms, as well as helping to put changes into place for the overall well-being of the bitcoin ecosystem. Yamada stated the following:
In addition to diversifying means, we will implement initiatives to improve bitcoin recognition and usage promotion. With the introduction of bitcoin payment service, we respond to the diverse needs of our customers both in Japan and overseas.
Has BitFlyer seen an increase in usage as a result of this partnership?
According to BitFlyer, they have seen a relatively substantial increase in transaction throughput following the announcement of this partnership. Yamada has not commented on any increase in transaction volume, or published any figures regarding their sales in BTC thus far.
Bitflyer noted in a press release that they are working with Yamada Denki to improve efficiency and convenience for customers worldwide.
Lower friction for users tends to increase conversions. Less friction, more sales. By integrating their systems, Yamada and BitFlyer are poised to disrupt competitors who are not testing hybrid payment systems due to lower transaction costs from SegWit activation and alternative cryptocurrency options.
Has Yamada Denki encountered any issues with accepting BTC?
The firm is testing BTC payments at two locations initially, with a stressed intent to deploy the system nationally. There have been no notable issues announced at this time. Due to the development put into BitFlyer systems, Yamada seems hopeful that no major issues will be encountered during the pilot.
BTC transaction fees have dropped sharply, following SegWit activation. Because BitFlyer supports SegWit activation, BTC transaction fees for users have also fallen with overall network fees. Yamada and BitFlyer now offer a powerful combination of reduced fees and rapid transaction resolution.
Are there limits to how much BTC can be spent through Yamada Denki?
Yamada has decided to limit BTC transactions to a maximum value of 300,000 yen, or about $2,700. In partnering with BitFlyer. The company has taken a strong step forward to ease the integrating with a low-friction Point of Sale (PoS) system for their users. Less customer-facing friction seems to be yielding substantial results for both operations.
The pilot program offers participants increased leeway in spending through BTC than a similar pilot program carried out last year by Bic Camera. Participants in the 2017 pilot program were only allowed to purchase in amounts less than 100,000 yen or $900.