News

Bitcoin Vending Network launched

May 12, 2014

Phoenix-based Cephas Holdings has launched the Bitcoin Vending Network for businesses interested in selling Bitcoins via vending machines and POS terminals, according to a company announcement.

Cephas said it chose to emphasize vending machines rather than ATMs because of the evolving regulatory climate. It believes that regulators are presently more accepting of the direct sale of Bitcoins than the exchange of Bitcoins for dollars.

Cephas expects to take delivery of its initial Bitcoin hardware in May. The Bitcoin Vending Network expects to offer plans for entrepreneurs to purchase or lease Bitcoin machines, Cephas said.

“For retailers, owning your own Bitcoin machine is like having another profit center in your business,” the Bitcoin Vending Network website said. “With payments as low as $100 per month, even low-traffic locations can see a substantial return on investment.

“A fully functioning machine can be purchased from us for $1,500. We recommend that it is stocked with $500 worth of Bitcoin,” the Bitcoin Vending Network website says. “For approximately $2,000, you can be in the Bitcoin business. You buy Bitcoin vending machines and place them in retail locations such as gas stations, convenience stores, bars and nightclubs. You keep Bitcoin loaded in the machines, and every time a customer purchases Bitcoin, you collect the transaction fee, known as a ‘surcharge.’ The average surcharge fee is approximately $3.00 nationally, but businesses like nightclubs and other high-end locations can range anywhere from $3 to even $10 per transaction. 5,000 transactions represents a gross fee revenue of $15,000 at the above rate.”