Florists Who Accept Bitcoin See Sales Blossom
BloomNation, a marketplace for connecting customers with local florists, finds Bitcoin users spend on average 50% more per transaction than credit card users.
"Bitcoiners are more romantic," jokes David Daneshgar, a co-founder of BloomNation. Actually, the spikes in sales correlate to holidays as well as to the publicity the company has received from the reddit discussion site, Daneshgar says.
The vendor began supporting the digital currency two months ago, mainly because the company is backed by Andreessen Horowitz, a venture capitalist firm that also invests heavily in Coinbase, a Bitcoin wallet and merchant services provider.
Coinbase processes BloomNation's Bitcoin transactions and allows the company to immediately transfer bitcoins to U.S. dollars to pay merchants. This alleviates merchants of the risk associated with Bitcoin's much-publicized price volatility. Alleviating this risk through companies like Coinbase and BitPay (another merchant services provider), has been a big help in pushing merchants to adopt the digital currency.
Coinbase offers $1 million in free processing and then charges 1% per transaction after that. While Daneshgar wouldn't disclose the number of Bitcoin transactions BloomNation has seen, "Bitcoin users are increasing at a faster rate than other payment methods," he says. "Bitcoin is becoming a larger and larger percentage of the whole pool."
Bitcoin has a chance to revolutionize the floral industry as a competitor to dominant companies like 1-800-Flowers.com, says Daneshgar.
BloomNation can use Bitcoin to "open new markets up to mom and pop shops that wouldn't get access otherwise," Daneshgar says. Some local florists in the U.S. selling through BloomNation have received orders from parts of Europe, he says.