Saturday morning, the coffee is already hot, the dog warms his feet and at the moment only one thing to do – a gift for Mother’s Day. Enter in the browser sephora.com, look for the right perfumes, add to the basket, click pay, choose the option “bitcoin“And transfer the appropriate amount from our mobile wallet to the address provided in the form of a QR code. Of course, realizing how valuable bitcoin can be in the future, we quickly log in to our exchange office and buy the right amount btcto at least make up for the losses. This is the first version of this story.
Now the second version.
The same Saturday, coffee and dog on the feet, the same thing to do, and yet something like different. We go to sephora.com using our favorite platform, buy perfumes, pay with getting rid of fiats. Suddenly, it turns out that the said platform rewards us with 5% cashback in Satoshi, which, after 2 weeks and having been confirmed by the store that we will not return the goods, we can withdraw to your cryptocurrency wallet. Our jaw drops, the price Bitcoin after a few years it is much higher, thanks to which we can save satoshi this time for Mother’s Day and fund her weekend at SPA … and then we wake up. Because it’s a dream, right?
Not completely. The fact that people do not want to spend bitcoin is a trend that has been visible for some time and in truth there is no wonder. The fact that on the other hand they want to accumulate it as much as possible is also not new.
Cashback in bitcoins
Based on these basic assumptions, two popular applications were created in the United States – Lolli and Fold. The scheme of operation here is very simple – websites of this type help stores generate sales, for which they receive their commission, and then most of this commission is transferred to the user in the form of satoshi.
The effects even amaze the creators themselves. Some users boast on Twitter that all their buying decisions during Cyber Monday were dictated by whether the store has a partnership with Lolla.
The fact that Lolli has recently raised USD 3 million in the second round of financing in the US has demonstrated an increasingly serious approach to these applications. It is estimated that these services currently support between 50 – 100 thousand users each (official data is unfortunately not available). This is still not enough compared to normal cashback programs from that region. The most popular of them in the US – Ebates (Rakuten) and Topcashback have about 10 and 6.5 million users respectively. Available in the UK, France and Germany, Quidco – 7 million, the largest Planet Plus in Poland boasts 500,000 members. With these numbers, their bitcoin counterparts may seem small, but considering the already quite limited (to cryptocurrency enthusiasts) market of those interested, one can already speak of a specific phenomenon. Although everyone can use it, there is no doubt that the value of such a system will first be noticed by people interested in bitcoin.
How do cashback applications support bitcoin adoption?
Interestingly, the impact of new platforms on the bitcoin ecosystem is greater than you might think. Here are some of the most important issues to consider:
- This is an ideal form of entry for people newly interested in the Bitcoin phenomenon – not everyone has to want to set up an account in an exchange office or on a cryptocurrency exchange, undergo a process KYC and spend hard-earned money on something he doesn’t understand. It is different if it receives bitcoin (or part of it) when shopping online. This is a proposal to save in bitcoin in its simplest form.
- Growing adoption – it is difficult to assess to what extent, however, such services cause permanent attraction to the cryptocurrency area, at least some of their users. In their reports, Lolli boasts that about 30-40% of their clients got their first satoshi on their platform and, what is equally interesting in the context of our environment, a large proportion of them are women.
- You don’t need to have all bitcoin – new users quickly realize that you can only have a bitcoin particle, and it still does its job perfectly. It may seem ridiculous to us, but the number of people who do not know that bitcoin is divisible to eight decimal places is still staggering.
- Demand pressure – any platform of this type that offers the option of withdrawing accumulated funds for its wallet must buy bitcoin for its users on an ongoing basis (or even with a view to the future). You do not need to explain how this affects the valuation itself kryptowaluty.
And this is just the tip of the iceberg. We will write about other positive aspects (and several negative ones) in the next parts of the series. We will also compare the most important platforms currently available.