Beepi, a peer-to-peer used auto marketplace based in California, recently announced that it will begin accepting Bitcoin payments through a partnership with Bitpay. Both companies are hopeful the new alliance will help simplify the payment process for customers paying with Bitcoin for used cars.
What Is Beepi?
In 2013, Beepi entered the used car market, a market left untouched by innovation for decades. Instead of the traditional dealer-consumer or consumer-consumer negotiations, Beepi connects buyers and sellers directly with no haggling, trips to the dealership, or overpriced commissions. Beepi works to make the used auto market a place for both sides of the transaction to come together and strike a deal that benefits everyone involved.
Where BitPay Comes In
Using BitPay is another way Beepi hopes to streamline the process of buying a used car. Stephanie Wargo, BitPay’s vice president of marketing, says the transaction is quick and easy for both the seller and the buyer.
“Merchants list their prices in dollars, and when it comes time for the consumer to pay for the purchase, we provide the consumer with a spot rate and hold that rate for 15 minutes to give the customer time to pay,” Wargo said in an email. “The merchant receives the price of that item minus BitPay’s fees (which are 1 percent or lower). Funds are deposited the next business day, and the merchant has the option of taking all dollars, all bitcoins, or any split.”
After customers browse cars and select “check-out” on the Beepi site, the site prompts them to select a payment option, one of which is a Bitcoin icon. Then BitPay allows the buyer to use bitcoins to complete the purchase while the seller still receives cash.
Why Bitcoin Works for Buying Cars
Cars are usually the second-largest purchase someone makes in a lifetime. Like any other large purchase, buying a car isn’t usually done with cash, so the transaction comes with its own financial fees and hurdles. This is especially true for online payments, including those made in the used auto market.
So, instead of using a payment service that charges a hefty percentage of the price tag, online merchants are turning to Bitcoin as a cheaper and more cost-effective alternative. Bitcoin has a very low transaction cost, which is helpful for large purchases.
BitPay has already proven that using bitcoins to pay for cars is successful, but Beepi was its first online used car partner. Bitcoin Car Dealer also deals in using bitcoins to pay for cars, particularly high-end models. Even Lamborghini joined in, selling a Tesla Model S using bitcoins in December 2013.
Moving to Bitcoin is the natural solution in a tech-savvy world, according to Beepi cofounders Ale Resnik and Owen Savir. “We’re shaping the antiquated process of buying a car by removing complex barriers that go beyond just payment options,” they said. “In turn, Bitcoin is reshaping an outdated payments industry, which is moving us toward a digital, cashless society.”
Featured image by Shutterstock.