Norwegian Air Offers Discount on Crypto Payments as its Owners Chalk Bigger Plans

Reportedly, Norwegian Air Shuttle, aka as Norwegian, which offers cheap flights worldwide is reeling under financial stress. The Airline company has been unable to generate profits in the last couple of years.
The management, has hence, looked to diversify their business into cryptocurrencies. As reported earlier on Coingape, the Norweigian Founders are launching a cryptocurrency Exchange, Norwegian Block Exchange (NBX), which is due for launch next month.
Moreover, they have also started accepting cryptocurrencies as payments. The cryptocurrencies currently supported by the Airlines are Bitcoin, Ethereum and stablecoin, USD Circle.
To further increase adoption, they are now offering lucrative discounts and offers on cryptocurrency payments. The move is motivated to increase liquidity and cost efficiency above credit card payments. Currently, the banks and service providers charge a hefty fee of around 1.5%-2.5% and also “hold back a percentage of revenue to cover the risk of chargeback claims arising from insolvencies.”
Lasse Sandaker-Nielsen, Norwegian’s head of communications, told the media,
“Why should we wait for our revenues, and then have the credit card acquirers and the credit card companies make a lot of interest just sitting on that money,”
Moreover, the motivation of the management is also driven to increase the viability of their crypto-Exchange and Wallet. The company is looking to leverage its global presence in the airline industry to lure customers to their exchange.
They are offering ‘CashPoints’ to traders which can be used to book flight tickets. The ‘Trade and Fly’ promotion refunds 10% of trading fees on the exchange to customers’ as CashPoints. This is a very lucrative offer for regular traders and for the promotion of its Exchange.
Furthermore, they are backing it on the market itself, rather than releasing their own cryptocurrency. Hence, it seems a long shot for the conglomerate at the moment. Nevertheless, even 73-old Bjørn Kjos, the original Founder of Norweigian Airlines is confident about them, Sandaker-Nielsen reiterated Kjos’s views. He said,
“He [Kjos] believes that the banks and the credit card companies are the next Kodaks,”
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The post Norwegian Air Offers Discount on Crypto Payments as its Owners Chalk Bigger Plans appeared first on Coingape.
Source: CoinGape

Adoption: Norway’s Biggest Airlines Passengers Now Can Buy Tickets Using Bitcoin

One of Norway’s biggest airlines, Norwegian Air, is reported to have plans of incorporating bitcoin payments into its payment system. In this new arrangement, passengers or customers would be able to buy air tickets using cryptocurrencies like bitcoin.
This news is the first to be confirmed in Norway and it leads the blockchain aviation business in the region. According to the report, Norwegian Air plans to open its own cryptocurrency exchange to facilitate the process.
The Norwegian Air’s crypto exchange, Norwegian Block Exchange (NBX) which is yet to be made public in its details will function as the typical crypto exchanges and allow for trading of cryptocurrencies as well as buying airline tickets using bitcoins.
Following this development, Norwegian Air is set to launch its new crypto payment for plane tickets on its Norwegian Block Exchange (NBX) in August while the plan to extend this to other neighboring countries is actively being developed.
As part of the new payment system implementation, Norwegian Block Exchange would integrate the existing reward program in which customers could earn points trading on the exchange and can exchange these points for discounts on plane tickets.
According to Stig A. Kjos-Mathisen, the Norwegian Block Exchange’s head,
“NBX’s customers are given the opportunity to earn cash points “on trades on the stock exchange, as well as on payments made through the payment solution NBX stock for the airline,”
Blockchain has found its way into the aviation sector for quite a while. With many of the airlines which accept cryptocurrencies for plane tickets being outside Norway, this news adds the country to the list of those adopting the system early enough.
Among the airlines who’s system allows for cryptocurrency payments include CheapAir, Destina, AirBaltic, Peach Aviation and so many more, some of which began the process as far back as 2013.
The post Adoption: Norway’s Biggest Airlines Passengers Now Can Buy Tickets Using Bitcoin appeared first on Coingape.
Source: CoinGape