{"id":948,"date":"2022-06-27T20:08:49","date_gmt":"2022-06-27T20:08:49","guid":{"rendered":"https:\/\/grandpascrypto.com\/?p=948"},"modified":"2022-06-27T20:08:51","modified_gmt":"2022-06-27T20:08:51","slug":"what-is-flexa-how-chipotle-and-crypto-make-sense","status":"publish","type":"post","link":"https:\/\/grandpascrypto.com\/what-is-flexa-how-chipotle-and-crypto-make-sense\/","title":{"rendered":"What is Flexa? How Chipotle and Crypto Make Sense"},"content":{"rendered":"\n

tl;dr Summary<\/strong>: Chipotle and crypto may sound like an unlikely pairing but the use of blockchain technology in the food service industry couldn\u2019t be more perfect. With traditional payment processors charging up to 4% in transaction fees, restaurants have long looked for methods to reduce costs at checkout. Flexa, a blockchain payment processor, offers restaurants a 1% transaction fee.<\/em><\/p>\n\n\n\n

At the beginning of June Chipotle announced its nearly 3000 stores would now be accepting crypto at all its locations through Flexa<\/a>. Chipotle is now part of an ever expanding list of restaurants that are experimenting with cryptocurrency as a payment and potential promotional play.<\/p>\n\n\n\n

Over the last couple of years, restaurant chains such as Shake Shack, Starbucks, Quiznos, Pizza Hut, Burger King, and a myriad of others have begun testing or rolling out crypto as a payment option. The addition of crypto as a payment option for many of these companies is in their best interest. It engages a customer base that is highly enthusiastic and easy to promote potential deals to. <\/p>\n\n\n\n

But as blockchain technology improves, restaurants look to crypto for more than just an interesting marketing headline. There are real cost benefits that restaurants are seeing in crypto. While traditional payment processing fees have been notoriously high, blockchain companies\u2019 streamlined payment processing systems’ low fees are beginning to look like viable cheap alternatives.<\/p>\n\n\n\n

With all this in mind, let\u2019s explore how expensive traditional payment processing is, how expensive Flexa is, and what is next for blockchain payment processing companies.<\/p>\n\n\n\n

The Incentive<\/strong><\/h2>\n\n\n\n

Have you ever gone into a store and wondered why they have a $5 minimum to pay with a credit card?<\/p>\n\n\n\n

It isn\u2019t uncommon for restaurants and stores to enforce such restrictions on its customers due to the expensive fees payment processors extract. Stores can be forced to pay up to 4%<\/a> for a transaction. These rates tend to be higher for restaurants or high volume and low margin businesses which are disproportionately impacted by flat rate costs built into payment processing fees.<\/p>\n\n\n\n

Because of this, restaurants are highly incentivized to reduce payment margins because the ability to reduce payment fees on transactions by even 0.5% percent could represent a substantial increase in what the business takes home in profits. Blockchain payment processors such as Flexa offer payment processing on the blockchain for a fee of less than 1%<\/a>.<\/p>\n\n\n\n

\n

\ud83d\ude0eHow fast was that? Digital currency payments seamlessly integrated into existing infrastructure at major retailers.

Scan, receipt, have a good day!#PayWithFlexa<\/a> #SPEDN<\/a>#PoweredByAmp<\/a> $AMP<\/a> pic.twitter.com\/ygWr7pR4Uq<\/a><\/p>— bubby (@bubby_io) June 23, 2022<\/a><\/blockquote>