Reddit to accept bitcoin for premium service
The site follows WordPress in accepting the virtual currency for payments
IDG News Service - The popular social-news site Reddit said it will now accept bitcoins, following blogging platform WordPress in embracing the four-year-old virtual currency.
Reddit, which lets users submit and vote on popular Web content, already uses PayPal and Google Wallet for its "Gold" service, which gives users a range of editing tools and an option to turn off advertisements. The Gold service costs $3.99 a month or $29.99 a year.
Accepting bitcoin will allow the site to take payments from anywhere in the world, according to Reddit's blog.
Bitcoin is a virtual currency that can be purchased through exchanges for government-issued currency. Transactions are verified by a peer-to-peer system, and payments can be sent anywhere in the world for a low fee or in some cases no fee within about an hour. On Friday, one bitcoin cost about $27, according to Mt.Gox, a Japan-based exchange.
The virtual currency is looking increasingly attractive to online merchants, who run the risk of incurring a "chargeback" by banks if someone fraudulently makes a purchase with someone else's credit card details. Due to its cryptographic verification system, bitcoins cannot be fraudulently spent, which relieves merchants of chargeback worries.
Reddit also accepts credit card payments, but only from the U.S. and Canada, although the site said it hopes to accept credit card payments from more countries within a week.
It said it will use Coinbase as its payment processor. Coinbase, based in Beaverton, Oregon, is one of many businesses specializing in services for merchants who want to use bitcoin.
WordPress announced in November that it would accept bitcoins, opening up some of the blogging platform's paid-for features to people in countries not supported by credit card companies and PayPal.
Send news tips and comments to email@example.com. Follow me on Twitter: @jeremy_kirk
- Social Media in Technology: A Unified Strategy for Success Find out how social media is sparking a new era of customer and industry-understanding in technology enterprises and how industry leaders are overcoming...
- The Truth About Virtual Computing for CAD If you're a user of graphics-intensive software such as 3D modeling, simulation and analysis, and visualization, you might be skeptical about moving to...
- Going Paperless? Here's What You Need to Think About As makers of some of the world's most popular PDF solutions, we often consult with businesses & governmental agencies that have the goal...
- Why Are Customers Really Deploying an NGFW? It seems every IT Security expert is talking about the NGFW, but what are people really doing? This webcast covers 5 real-world customer... All Social Media White Papers | Webcasts
Our new weekly Consumerization of IT newsletter covers a wide range of trends including BYOD, smartphones, tablets, MDM, cloud, social and what it all means for IT. Subscribe now and stay up to date!