The biggest online retailer in Switzerland, Digitec Galaxus, has started accepting Bitcoins. The ‘Amazon of Switzerland’ will also start accepting other major altcoins. Customers can now use crypto to pay for goods from the online retail giant.
Bitcoin Cash (BCH), Ethereum (ETH), Ripple (XRP), Binance (BNB) and Litecoin (LTC) are some of the coins listed in the suite of payment options.
Cryptocurrencies ‘A Relevant Means of eCommerce Payments’
Speaking of this new development, Oliver Herren, the Chief Innovation Officer at Digitec, said that crypto could become a relevant means by which customers would pay for their goods. He added that the online retailer added the extra payment method because cryptocurrencies are fascinating and the company would like to support it.
The online store aims to win the hearts of the youth, who are tech-savvy and already own crypto. This demographic makes up a large percentage of the Swiss customers of the retailer. They are also willing to try new things with cryptocurrencies.
Cryptocurrencies are fascinating and could become a relevant means of payment in e-commerce – we would like to support this development.
The online store has its headquarters in Zug, Switzerland. Zug is famous for its forward-thinking approach to crypto. It is home to many startups which deal with the blockchain and crypto ecosystems. Even the city administration encourages growth in this emerging financial sector.
In Zug, you could pay for a ticket using cryptocurrencies, since the innovation won government support. It is for this reason that it has earned itself a moniker, ‘the Crypto Valley.’
One of the biggest obstacles for crypto adoption is volatility. Prices change without notice, meaning that it is difficult to plan ahead. Therefore, many online stores have been hesitant to include these innovative payment methods.
To solve the problem, the online store uses Coinify, which is a third-party payment processor. The processor instantly calculates the cryptocurrency payment amounts into Swiss Francs, to help the online shopper do their math well.
Another way of mitigating the price volatility issue is freezing the exchange rate during the purchase time. When the customer goes to the cart to check out, the exchange rate is frozen for 15 minutes. After that, the price changes to correspond to the market rates.
Digitec’s foray into the cryptocurrency industry is a precursor for future adoption. If all goes well, then other startups may follow suit. This would mean well for Bitcoin and the crypto market.
Do you think other online retailers will follow the example of Digitec Galaxus? Please let us know in the comments section below!