The digital payment industry has highcompetition, due to the many digital payment providers such as PayPal and ApplePay, users are loyal to these providers.
Industry growth rate is very high as nonbank digital entrants is transforming thecustomer experience, reshaping the payments and broader financial-serviceslandscape. Product differentiation is what allows competitors to be sosuccessful, payment providers are failing to invest in digitalinfrastructures and services. The diversity ofcompetitors allowing consumer-to-consumer tobusiness-to-business cross-border payments will force many banks to rethinktheir long-standing approaches to cross-border payments (figure 2.1). The digital payment industry is also underfire from regulators, which are stepping up their efforts to inject morecompetition into a payments industry that has long been dominated by the bigbanks. The risks of a breach leading to financial loss is a very importantdecision factor for adoption of digital payment technologies. Bitcoin is verydesirable in the digital payment industry as it has very low transaction fees,there is user Anonymity and purchasesmade are not taxed.
This is an attractive attribute to Bitcoin as consumers whoare in the digital payment industry know that the competitors do not have theseelements.
