A ‘new normal’ way to pay
Cryptocurrency offers a new method of payment. While it may be regarded with uncertainty, perhaps even apprehension, it could offer key benefits in the post-pandemic world. Words: Yves Le Marquand
Drive a good deal: Crypto is the “fastest and safest” method of payment, says Yann-Guillaume Jaccard.
A ‘new normal’ way to pay
Cryptocurrency offers a new method of payment. While it may be regarded with uncertainty, perhaps even apprehension, it could offer key benefits in the post-pandemic world. Words: Yves Le Marquand
Drive a good deal: Crypto is the “fastest and safest” method of payment, says Yann-Guillaume Jaccard.
IT’S GETTING LATE in the evening. You need a go-now flight before the day is out, but before you think about embarking, payment needs to be made. Traditional forms of paying are all but useless in this ‘on-demand’ situation. A wire transfer would take until the day after to clear and whilst a credit card could work, you would be hard pushed to find a service worth flying on that would take a six-figure sum on speculation. Enter crypto. A cryptocurrency payment service provider, such as BitPay, will clear the transaction in minutes allowing the payer to literally pay and fly (if the operator has an aircraft ready).
This was the reality for one flyer hoping to charter a Bombardier Challenger 350 from Russia to central Europe with Swiss-based Simply Jet. CEO and co-founder, Yann-Guillaume Jaccard tells Corporate Jet Investor: “Some missions would have been completely unable to close if we didn't offer cryptocurrency as a payment option.
“The client for this mission had maxed out his credit card, but even if he didn’t, for a first-time client we are not very confident about taking a £100k payment on credit. So with BitPay, in about five minutes, the transaction is processed and you get an email telling you the funds are on the way.” About 30 minutes later, BitPay legally confirms if the funds have reached your account. If they haven't for any reason (which happens in 0.000001% of transactions) BitPay will cover it and pay the difference.
“To me there is no other financial solution in the market that proposes anything similar,” says Jaccard. Simply Jet made its first cryptocurrency transaction in September 2020 and accepts a variety of the major cryptocurrencies including Bitcoin, Ethereum and Dogecoin. The currencies made up 0.002% of the firm’s inbound payments last year – so far in 2021 that has risen to 5%. Jaccard expects this number to increase to between 10-15% by this time next year.
A lot of people tend to approach cryptocurrency with cynicism and sometimes even apprehension. Jaccard says: “Of course, cryptos are subject to heavy speculation but so are other asset classes that we generally consider stores of value, such as precious metals or real estate. By design, a lot of cryptos also have a capped supply. Check the M2 growth [a measure of the money supply that includes cash, checking deposits, and easily convertible near money] of the USD these past 18 months, now that is a currency I'm scared of.”
Also, whilst your typical speculative investor or cryptocurrency enthusiast may have won big or lost bigger on the volatility of crypto markets, this is not something that concerns Jaccard or other firms dealing in the digital currencies. When, for example, Simply Jet takes payment in Bitcoin the funds are immediately transferred into their euro or dollar equivalent, therefore negating the risk of a sudden drop in value. This is the same practice employed by Denison Yachting which has completed the sales of seven vessels this year using cryptocurrency.
“No other financial solution proposes anything similar.”
Yann-Guillaume Jaccard, Simply Jet
Need to be on your way? Then using a cryptocurrency may be the best way to pay quickly, safely and securely.
Jaccard says cryptocurrency is the fastest and safest method of payment. With a crypto transaction, you know the person you are talking to cannot lead you up and down the garden path. You send one link to the payer and they pay the funds from their wallet into yours; it is irreversible and there can be no foreign intervention in the transaction.
The impact of Covid-19 has further highlighted the use case for cryptocurrency in private aviation. Travel restrictions and border closings have thrown scheduling out of the window, making last minute flight requests a part of the new normal. “Cryptocurrency has become part of the process, most of our brokers now tell their clients: ‘Hey, you are able pay for this flight via crypto’,” says Jaccard.
Austria-based charter operator, GlobeAir has been offering cryptocurrency as a payment option since March 2021. The firm, like Simply Jet, also uses BitPay to manage its transactions and accepts Bitcoin, Ethereum, Bitcoin Cash and Dogecoin on all bookings without charging any transaction fees. GlobeAir is on track for its goal of completing 3% of all transaction in crypto this year.
GlobeAir CEO Bernhard Fragner tells CJI that being an early adopter into such a large market made logistical sense: “When talking about Bitcoin and other cryptocurrencies, we’re talking about a very large market opportunity. Bitcoin alone represents nearly $200bn. Tapping into this massive market can translate into new customers and sales. Being first can mean capturing pent up customer demand.” Bitcoin is a modern, global and innovative way to pay, says Fragner. Digital currencies and blockchain based coins are engineered for the online and cross-border world. “They are cheaper than traditional payment options and are easier for customers anywhere and free from chargebacks and fraud related losses.”
Customers want a safe, secure and fast way to pay from anywhere in the world without the friction of bank accounts and the security concerns of sharing personal data or having it stolen. “Bitcoin and other cryptos solve many of the pain points of traditional payment methods,” says Fragner.
So what the does the future hold for cryptocurrency? Jaccard says: “I think [wider uptake] is a case of executives beginning to better understand the idea and realise that crypto is really just a credit card but miles ahead technologically.”
The benefits are clear to behold. If cryptocurrency hadn’t been available, Simply Jet’s client would have been stuck unable to fly. In a cross-border, globalised world where information travels instantly it seems only logical that our finances should be able to move just as easily and confidentially. There was resistance to the introduction of bank cards back in the 1960s and ’70s and now you’ll find at least one in almost everyone's wallet. So, in that sense, it’s just a matter of time.
“Using crypto currencies solves many of the pain points…”
Bernhard Fragner, GlobeAir
Last minute flight requests have become the new normal. Cryptocurrencies can speed the transaction.
