[2014-07-24] World’s First Airline to Accept Bitcoin Misses a Big Opportunity

[epere]

http://www.coindesk.com/airbaltic-accepts-bitcoin-missed-opportunity/

Neil Murray is an entrepreneur and writer involved in the Nordic and European startup scene. He runs The Nordic Web, a content and data provider, alongside VIP VoIP, an event series which connects local startup ecosystems with global tech players. Here, he discusses the perks of bitcoin as both a marketing tool and a cheaper transaction method.

[hilariousandco]

This is a a positive move for those that want bitcoin to evolve into a mainstream currency that can be used for the purchase of everyday goods and utilities, and it could lead competitors to also offer a bitcoin payment option. The immediate knock-on effect could be that Expedia will start accepting bitcoin for flight bookings, in addition to hotel bookings that you can already make with the cryptocurrency.

Exactly. I don't think most businesses realise the dual benefits of accepting Bitcoin in that they both save money on fees and get a load of free advertising in the process. There's literally no risk to them if they use a payment processor.

By becoming the first airline to accept Bitcoin, airBaltic have surely stolen a march on everybody else. However, they have missed a trick. The dreaded transaction fee.

Yet, even when booking a flight with bitcoin, the transaction fee is €5.99.

Slight shame about the transaction fee. If there wasn't one it would definitely pique customers' interest as to why it's free for bitcoin and encourage them to use it.  

[DMeeks]

I don't see that 6 euro fee such a big thing, I think they use it for fees and costs of the ones approving and processing payments and bitpay as well. and it's not that much compared to a flight fees.

[hilariousandco]

I don't see that 6 euro fee such a big thing, I think they use it for fees and costs of the ones approving and processing payments and bitpay as well. and it's not that much compared to a flight fees.

It's not a massive thing, but it offers no incentive for customers to use it. They charge no fees to use their own card which is obviously an incentive/attempt to get people to use that, as the article mentions.

[bryant.coleman]

I don't see that 6 euro fee such a big thing, I think they use it for fees and costs of the ones approving and processing payments and bitpay as well. and it's not that much compared to a flight fees.

Exactly. When compared to the total fare, the fee is fractional. And the transaction fee is paid per booking, and not per person. Imagine someone booking a dozen tickets from Riga to London for EUR 10,000. The fee represents just 0.06% of the total volume.

[MegaHustlr]

I hope this is the first of many airlines that accept bitcoin. The benefits are huge to them as the processing fees that go along with airlines and credit cards are also huge, I just hope at one point they pass the benefits onto the customer as that will be an incentive for people to actually pay with bitcoin.

[Dangolbery]

Was probably a forced backroom deal type of thing that there had to be the same fee on btc as credit providers.

I imagine visa/mastercard and all those guys would cancel your account otherwise and then the only way to buy a ticket on your airline is bank transfer or bitcoins. The big dogs still have everyone buy the balls.

[Dangolbery]

Was probably a forced backroom deal type of thing that there had to be the same fee on btc as credit providers.

I imagine visa/mastercard and all those guys would cancel your account otherwise and then the only way to buy a ticket on your airline is bank transfer or bitcoins. The big dogs still have everyone buy the balls.

And if you look at their card they are actually in partnership with visa so visa would have just said keep the fees the same and we'll allow you to accept btcs.

[freedomno1]

That is a missed opportunity although it does seem weird that a transaction fee of that size is needed
But it all goes to their bottom line anyways since their claim of processing and handling kind of seems a bit strange, until you realize its to promote one of their member perks.

Still this is good news glad to hear that airBaltic, confirmed that it is now accepting bitcoin, and in doing so, is now the first airline that accepts bitcoin directly, rather than through a third party like Expedia.

[howardb]

I think when bitcoin adoption becomes more universal, merchants like this that try to add on the old credit card fee's so they can pocket them will become the Monsanto's of the future, pariahs, shunned by everyone.

[SOAD]

I think when bitcoin adoption becomes more universal, merchants like this that try to add on the old credit card fee's so they can pocket them will become the Monsanto's of the future, pariahs, shunned by everyone.

The fees should be relative to how much it actually costs them to process or how much they lose via the certain payment method. I've seen companies add on a little extra when paying through paypal which is understandbale given their high fees, but there's no excuse for the same rates with bitcoin.

[ThomasCrowne]

That is a pretty insane fee to charge just for accepting bitcoin.

[The00Dustin]

This post and the OP in that thread indicate the fee has been removed.  Odd (albeit great) that they would remove it completely as opposed to significantly reducing it considering that they are presumably using a payment processor.

[kjlimo]

This is a a positive move for those that want bitcoin to evolve into a mainstream currency that can be used for the purchase of everyday goods and utilities, and it could lead competitors to also offer a bitcoin payment option. The immediate knock-on effect could be that Expedia will start accepting bitcoin for flight bookings, in addition to hotel bookings that you can already make with the cryptocurrency.

Exactly. I don't think most businesses realise the dual benefits of accepting Bitcoin in that they both save money on fees and get a load of free advertising in the process. There's literally no risk to them if they use a payment processor.

By becoming the first airline to accept Bitcoin, airBaltic have surely stolen a march on everybody else. However, they have missed a trick. The dreaded transaction fee.

Yet, even when booking a flight with bitcoin, the transaction fee is €5.99.

Slight shame about the transaction fee. If there wasn't one it would definitely pique customers' interest as to why it's free for bitcoin and encourage them to use it.  

Isn't there risk if the network doesn't confirm the transaction?  For example, Bitpay invoices will display "paid" after zero confirmations, but won't send payment to the merchant until the network confirms the transaction.