Encouraging news for cryptocurrency payments is coming from Switzerland, as the country’s largest online retailer has started accepting cryptocurrencies for payment.
Galaxus is the largest online shop in Switzerland and serves neighboring European countries as well. The company generated sales close to one billion Swiss francs (CHF) in 2018.
Swiss customers will now be able to pay for their purchases using a selection of cryptocurrencies, which includes Bitcoin (BTC), Bitcoin Cash (BCH), Bitcoin SV (BSV), Ethereum (ETH), XRP, Binance Coin (BNB), Litecoin (LTC), TRON (TRX), OmiseGo (OMG), and NEO.
According to Galaxus’ co-founder and chief innovation officer, Oliver Herren, the company has been dwelling on adding the payment option for some time. The CIO regards cryptocurrencies as a natural step in the evolution of online payments.
Moreover, Herren believes the initiative will also have a positive effect on the brand’s reputation with the younger, tech-savvier demographic. He believes the demand to pay with cryptocurrencies will stem from users owning digital assets and being willing to spend it — either due to difficulty converting it into fiat or out of pure curiosity to try new things.
Whether this will be enough for cryptocurrency payments to take off for the brand remains to be seen. Currently, most of the investors in the space are on the lookout for higher returns on their investments — hence an unwillingness to spend their cryptocurrency holdings right now.
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The company has minimal overhead costs for integrating the novel payment method, as all transactions are processed through Coinify. Payments processed through Coinify allow for immediate conversion to Swiss francs — eliminating the price volatility for both the customer and the online retailer.
The payment procedure is not any different from other popular methods. At checkout, the customer will have the option of paying with cryptocurrencies and will be re-directed to Coinify’s website. The payment processor fixates the current exchange rate for 15 minutes and the page will display an address as well as a QR-code. Galaxus does not charge any additional fees for cryptocurrency payments, but Coinify will take a 1.5 percent conversion fee.
The variety of digital currencies accepted by the retailer is dictated by Coinify’s ability to provide support for a specific coin. In the future, should Coinify supplement its list of supported coins, the retailer would also start accepting them.
The cryptocurrency payment method has been enabled solely for Swiss customers, but the company plans to replicate it in its German store as well.
Switzerland has been one of the countries with a positive outlook for the digital asset space, promoting and encouraging its development. Besides enabling the city of Zug in becoming the home to a lot of cryptocurrency startups, the Swiss financial regulators have also been quick to allow SIX, the stock exchange, to list cryptocurrency-related products like the Bitcoin and Ethereum ETP.
What do you think of this update from Galaxus? If you could start paying for your online purchases with crypto, would you do it? Share your opinion in the comments!
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