Uber, the ride-hailing giant, will integrate cryptocurrency payments into its app “at some point”. Customers will be able to use their bitcoins to pay for their rides when this happens.
Dara Khosrowshahi, Uber’s CEO, said the company is “having conversations all the time” about whether or not it should start accepting cryptocurrencies as payment. He further added, “I think, right now what we see with Bitcoin and some of the other cryptos are that they are quite valuable as a store of value.”
What are Crypto Payments?
Crypto payments, as we may know, refer to products and services purchased with cryptocurrencies like Bitcoin, Ethereum, and so on. They stand out from traditional methods due to their privacy, fast transactions, low transaction fees, and blockchain peer-to-peer technology.
So What’s Stopping Uber?
One of the main reasons preventing Uber from entering the market and committing to Bitcoin is environmental concerns related to crypto mining and the overall internet- and power-consuming sector. The company is waiting for a few tweaks—crypto assets to go greener, to be precise—before giving it the green light.
In addition, Khosrowshahi cited the current high cost of exchanges as another reason for the delay in adopting cryptos as payment. He also remarked that Uber is waiting for the cryptocurrency market to mature and grow out of its current volatile state.
Adding crypto as a mode of payment to the cab booking app will mean tapping into a hidden treasure, given that the company has a ridiculously high number of users. Uber claims that their services are now used in over 70 countries and 890 cities.
Has It Been Done Before?
The mainstream adoption of crypto in recent years has seen a rise in crypto payments. Crypto payment is a unique selling point for any business, and Uber isn’t the only company interested in the crypto market. Its future plans align with several other major tech companies.
Pioneering crypto payments, Microsoft began accepting Bitcoin as a form of payment in its online store way back in 2014. Tesla caught up with the trend and began accepting Dogecoin for some merchandise in its online store in January 2022. Mark Cuban’s Dallas Mavericks NBA team and movie theater chain AMC Theaters are other companies that accept crypto payment.
At this adoption rate, we are not too far away from giving our kids pocket money in crypto.
Disclaimer : Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. The information provided in this post is not to be considered as investment/financial advice from CoinSwitch. Any action taken upon the information shall be at user's own risk.
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