Dell has started accepting payments made in Bitcoin

Another well-known company is embracing digital money. On Friday, Dell announced that customers would be able to make purchases on its website using Bitcoin, claiming to become the biggest retailer yet to accept the virtual currency. “We put this together quickly as a result of listening to our customers,” said David Frink, a Dell spokesman. “It’s another way for customers to have a relationship with Dell.” When retailers started accepting Bitcoin, the appeal was largely the currency’s ability to attract new customers with its novelty. But as Bitcoin has become more mainstream, merchants may now be embracing digital money to lower payment processing fees and make purchases easier for already-loyal customers. “Retailers have very low margins, and online especially, and they’re in a constant battle with credit cards and banks to lower those fees,” said Gil Luria, an analyst with Wedbush Securities. “Now that they see this avenue for fees to go away, that’s really their big motivation.” To make accepting Bitcoin possible, Dell teamed up with Coinbase, a third-party payment processor that converts customers’ Bitcoins into dollars. Coinbase, which began with $25 million from the investment firm Andreessen Horowitz, approached Dell about accepting Bitcoin as a payment option a few months ago, said Adam White, the director of business development and strategy at Coinbase, who worked with Dell on the partnership. Dell reached out to Coinbase two weeks ago about adopting Bitcoin quickly, in time for back-to-school shopping, he said.