A playbook for Generating Business Ideas

3. Credit Card Company for Bitcoin
People use credit cards for fiat currency, so why not also for Bitcoin? Credit
companies are huge. Bitcoin is growing and enabling credit transactions would
make it more usable.
Credit cards allow cardholders to pay for goods and services based on the
holder’s promise to pay for them. The credit card company grants a line of credit
to the cardholder from which the cardholder can borrow.
For merchants, a credit card transaction is often more secure than other forms of
payment, such as checks, because the credit card company commits to pay the
merchant regardless of whether the consumer defaults on the credit card
payment.
Prior to credit cards, each merchant had to evaluate each customer’s credit
history before extending credit. That service is now performed by the credit card
companies (who also assume the risk). In addition, credit cards can also increase
sales if the customer does not have enough cash.
Credit card companies can make money by charging interest to cardholders or by
charging merchants a transaction fee. If Bitcoin becomes more widely adopted
as a currency, then many of the solutions needed by fiat currency holders would
probably also be needed by Bitcoin holders (similar to web—>mobile). There
are probably a range of products and services that support fiat currency holders
that could also be valuable to Bitcoin holders.

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