Although Bitcoin has been used for payrolls since its start, a formal service is being released by Bitwage. Jonathan Chester, founder and CEO of Bitwage, explains the launching in its press release: “This service combines a user-friendly portal for employers and employees with enterprise quality Bitcoin storage and distribution systems, thereby providing a Bitcoin Payroll service and streamlining the traditional payroll process”, indicating that the Bitcoin Payroll Alpha Service has been designed for smaller businesses, such as startups as “it minimizes the time, effort and room for human error in Bitcoin payroll”. Based out of Palo Alto, Bitwage works with companies inside of the US and plans to expand internationally.
In the statement, Jonathan Chester points out the 4 Benefits of Using Bitcoin Payroll:
- Increasing employer efficiency and productivity: “With the use of a Bitcoin Payroll Company, employers reduce the time it takes for an employee to be paid through banking institutions from 2-4 business days to just 10 minutes. That is a reduction of over 57,600%”;
- paying international employees easier, faster, and cheaper: “Traditional Payroll Companies have to go through banks that normally charge 2-3% to convert the employer’s local currency to the employee’s local currency. By using Bitcoin, instead of banks, as the underlying protocol to pay international employees, the employer can pay in one fiat currency, the employee can receive pay in another fiat currency and the currency conversion rate will be dramatically reduced”;
- employers and employees no longer need to use bank accounts; reaching the under-banked: “This reduces the need to spend money on 1% conversions plus banking fees and the need to send payroll payments through the slow, costly banking systems”;
- reaching the under-banked: “Payroll cards and other alternatives, such as check-cashing services, and money orders, cost $800-$900 on average a year out of an average of a $22,000 yearly budget”, wrote Chester, adding that one third of the US population is under-banked and that Bitcoin Payroll may be the solution against what many deem as “the poverty tax”.
To contact the reporter of this story: Ricardo Esteves at firstname.lastname@example.org
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