Almost 20% of private aviation company PrivateFly’s yearly revenues are now coming from travelers paying with Bitcoin. The use of cryptocurrency as a payment option has surged over the past two months, which previously made up only a marginal amount of revenue.
According to the company’s latest figures, 12% of flights were paid for using Bitcoin in December. These numbers increased to 13% in January, a huge jump from about 2% of previously paid flights through digital currency.
Those paying with Bitcoin tend to spend it on more expensive flights, notes the company. The company CEO Adam Twidell said,
“Some of these are clients who are looking to realize their gains, while others want to hold onto their cryptocurrency, in expectation of future increases. So, in addition to taking out a membership with us in Bitcoin and converting the account funds into traditional currency (as we have offered for a while), we now offer a membership program that allows the account funds to stay in Bitcoin
The price of Bitcoin has nearly increased 13x since its March 2020 low as it currently trades above $52,000.
The company first started accepting Bitcoin as a payment option in 2014 when a tech entrepreneur flew from Brussel to Nice and paid for that trip with digital currency.
PrivateFly has introduced a new membership program that allows its customers to place Bitcoin in an account that is charged using the value of BTC at the time of booking.
Other cryptos accepted by the company include Ethereum (ETH), Bitcoin Cash (BCH) and USDC, GUSD, PAX, and BUSD stablecoins.
The blockchain is here to bring us the future. S7 Airlines, a major aviation company that is a part of the Oneworld alliance, has recently revealed to the media that it was able to process $1 million USD in its new blockchain payment system during the month of July. This made July the best month of the platform so far.
S7 is the largest domestic airline company of Russia and it has been benefiting a lot from the new platform. S7 Airlines’ blockchain technology is powered by the Hyperledger Fabric platform, an open-source tech that is the basis of several blockchains at the moment.
Now, the goal is to deploy the first online agent of the company. This is set to be done sometime during 2019, according to Ekaterina Dmitruk, the group sales director.
The CEO of the company, Pavel Voronin, affirmed that the company was the first airline to execute the sale of a ticket using the blockchain last year and that the services got only better since then.
Since Its Start, The Platform Has Processed $4 Million In Payments
This new platform was officially launched back in January and each month is seeing more people using it. During these seven months, $4 million USD in transactions were processed using the system.
Part of the reason for the growth now is because of a partnership that was started with Alfa-Bank, a private bank from Russia. According to the executive director of the tech lab of S7 Airlines, Nikolai Mukhanov, not only the number of payments has been increased, but also how much of the process is automated today.
One of the main advantages of using the blockchain in this kind of operation is how much more efficient it gets. It considerably speeds up the process of handling the transactions, especially as no paperwork is required at all. This is very important for the B2B market as well, which is one of the most benefited by the decision.
Author: Gabriel Machado