updated 04:35 pm EDT, Tue July 1, 2014
Internet electronics retailer starts taking Bitcoin through partnership with BitPay
Newegg, one of the Internet's largest retailers of all things electronic, announced today that it is now accepting payments with the Internet currency Bitcoin. In a release from the company, Newegg says that customers can begin using the cryptocurrency to pay more than 10.5 million products the company carries.
The retailer chose to go with BitPay, a company that currently serves 35,000 merchants, to process Bitcoin payments. Newegg elected the company as it believes that it carries an "industry-leading reliability and scalability, thanks to the industry's "most powerful Bitcoin API." The partnership expands on Newegg's needs for high-volume commerce. Details weren't provided on how the transactions are processed, but BitPay says that it does an instant conversation to take on the risk of Bitcoin's pricing swings.
"Newegg's customers are among some of the earliest Bitcoin miners and are enthusiastic proponents of the cryptocurrency," said Newegg Chief Marketing Officer for North America Soren Mills. "Adopting Bitcoin as a payment method is another way we're responding to our customers' diverse needs."
While Newegg states that refunds and payments are handled by BitPay, attempting to pay for an order with the currency gives a warning. Users have only 15 minutes to complete a payment, allowing customers to pay with a digital wallet on a smartphone, website or software on a PC. If it isn't completed, customers need to create a new order or change the payment option in their order history.
It's also noted that all sales paid in full with Bitcoins are considered final. Newegg will not return items for Bitcoin or other currency, most likely because of the constant fluctuation of Bitcoin's daily value. If the company decides that an item is eligible for a return, the refund will be given in the form of a Newegg gift card.
Newegg joins a growing field of retailers using the Internet currency for its materials and services. Companies such as Overstock.com, Dish Network, and more recently Expedia have expanded their payment options through a partnership with Coinbase for processing. Coinbase announced today that 1-800-Flowers is joining the ranks of companies that use them to process transactions.