Recent data hacks of major corporations have demonstrated the security vulnerabilities of using credit cards; especially in e-commerce. Companies that store credit card information in their databases put consumers at risk for fraud and identity theft. While the US is moving towards integrated chips for consumer credit cards, online payments are still high risk when customers are required to provide sensitive data.
Additionally, merchants that accept credit cards have to deal with high fees, chargeback fraud, and the burden of securing the consumer's information through PCI compliance standards.
When purchasing goods and services with Bitcoin, money is sent to the merchant without transmitting this personal critical information. Just as you pay for things by "sending" cash to the cashier at your local supermarket, you are sending cash through your computer with Bitcoin.
When you conduct a cash transaction with a merchant, you don't worry about the merchant mishandling any of your financial information because it isn't required to make a purchase. Bitcoins transactions are irreversible, so the merchant doesn't deal with the costs of fraud and higher prices aren't pushed onto the consumer.
Bitcoin provides a secure and cost-efficient payment method for both merchants and consumers.