Irakli Litanishvili, Co-founder at Mirai Flights, explores…
It’s no secret that bitcoin and other cryptocurrencies are fighting what seems to be an uphill battle for acceptance. While there are investors and early adopters who are entirely on board the crypto train, the fact remains that it’s still considered niche by a lot of companies.
Amidst the struggles of various cryptocurrencies, many companies are hesitant to invest time and resources into implementing crypto payment processing. However, when viewed differently, luxury businesses may find that now is the perfect time to integrate crypto into their checkouts.
The Wealthy Are Seeking Novel Ways to Spend
Statistics from Forbes show that about 30 percent of the world’s wealthiest people surveyed have invested part of their capital in crypto and other forms of “new money.” In addition, a Wealth-X report found that self-made wealthy individuals are far more likely to own crypto and adjacent investments like NFTs.
These findings point to the fact that many people within the luxury demographic are willing to think outside the proverbial box and are not afraid to adopt new tech. The crypto market may be experiencing a downturn, but these investors understand the importance of long-term thinking regarding money.
It’s also worth noting that many wealthy crypto investors are younger, self-made individuals. In the U.S. alone, nearly 60 percent of cryptocurrency owners fall into the 18-44 age bracket. Because so many of these people are young and tech-savvy, this type of cutting-edge technology makes brands much more appealing when luxury shoppers seek out companies to do business with.
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This is one major reason that now is the right time to start accepting crypto. Another reason is that regulators have begun to take an active interest in the cryptocurrency market. This means enhanced safety and security, which could make crypto more appealing to the wealthy (and the general populace), so it’s wise to get a head start on implementation.
Luxury Tech Can Pave the Road to Profitability With Crypto Processors
The luxury segment needs to remember that their customers are willing to pay a premium price, but it must come with a premium experience. This extends to a holistic, simple checkout.
At Mirai, we decided to take the plunge early and start accepting crypto payments for our flights. Surprisingly, about 70 percent of our customers switched to crypto payments once we gave them the option!
We discovered that our luxury customers are more loyal than ever now that we have given them more options. Plus, cryptocurrencies like bitcoin are highly versatile and easily accessible, which makes the entire checkout process streamlined and painless.
What’s good for your customers is good for your business, too. We have found that implementing crypto payments can potentially increase profit margins into the double digits for luxury tech. This is especially true for startups that often operate on a razor-thin budget.
Overall, the cryptocurrency market might currently be in a downturn, but that doesn’t mean it has lost its value among the wealthy. In fact, now may be the best time for luxury brands to jump on the crypto bandwagon and snag a larger share of customer loyalty.