BermudAir has announced that it will start accepting payments for flight tickets in stablecoins by the end of 2025. The airline stated that it will do this through a partnership with Zero Hash.
According to a press release, the move will make BermudAir the first airline to offer native stablecoin payments for flight tickets through its official app and website. The companies unveiled the plan at the Bermuda Digital Finance Forum.
Speaking on the decision, the CEO of BermudAir, Adam Scott, described the embrace of stablecoins as a way to eliminate the friction of foreign exchange for its international users and help them to cut the cost in fees that they have to pay during such currency conversions.
He said:
“We are proud to lead the charge in crypto and stablecoin adoption within aviation. Allowing customers to pay for flights with stablecoins isn’t just about embracing the future of travel – it’s about making the experience faster, cheaper, and more inclusive for travelers worldwide.”
Bermuda is a famous tourist destination with over 200,000 in annual air travel. The announcement noted that most international travelers pay 1-3% fees when they book tickets with their credit cards.
However, such fees will be eliminated once people pay directly with stablecoins, and the speed of stablecoin transactions means that flight ticket confirmation can come on within minutes without any banking delays.
Interestingly, there is no mention of which stablecoins will be acceptable under the program. However, major dollar-pegged stablecoins such as USDT and USDC would likely be among the top options.
Zero Hash predicts mass adoption of stablecoins as the alternative payment method
Meanwhile, the infrastructure partner, Zero Hash, believes stablecoins will soon be used in everyday transactions. The company, a major crypto infrastructure provider, believes the numbers support this potential.
It noted that almost 750 million people have used stablecoins and crypto over the last two years through fintech platforms such as Robinhood, NuBank, Stripe, Revolut, and co., while stablecoins have seen $3.3 trillion in volume in just 30 days.
The company further identified the travel industry as one of the best sectors to lead stablecoin adoption, highlighting how the industry has always embraced financial innovations before other industries.
The founder of Zero Hash, Edward Woodford, said:
“This partnership with BermudAir exemplifies the convergence of digital finance innovation. By leveraging our stablecoin payments infrastructure, BermudAir can deliver the seamless payments and global accessibility that customers expect in the future of travel.”
While BermudAir might be the first airline to start accepting stablecoins, some travel platforms already allow crypto. One key example is the holiday website Travala.com, which accepts several crypto assets, including Bitcoin, Ethereum, and several others.
Stablecoin adoption growing even legislation hits roadblock
BermudAir’s planned adoption of stablecoin payments only highlights the broader trend of adoption that has enabled the stablecoin market cap to reach $242.85 billion. The ease of using stablecoins and their access to fiat currencies such as the US Dollar and Euro has made them one of the most acceptable crypto products globally.
While many use them for transactions and payments, they have also become a way for people in developing economies to save in USD and hedge against inflation.
The growth remains in full force, with Stripe recently launching Stablecoin Financial Accounts, a product that allows businesses in over 100 countries to send and receive stablecoins. The new feature came a few months after Stripe had paid $1 billion to acquire the stablecoin payment platform Bridge.
Meanwhile, Meta is also reportedly considering the integration of stablecoins into its payment platforms. According to Fortune, the company that tried its hands at stablecoins with project Libra in 2019 is currently discussing with several stablecoin issuers how to integrate stablecoins.
Despite all the developments around stablecoins, there is still no regulation for the US sector, and recent efforts hit a roadblock on Thursday after several pro-crypto Democrats voted against cloture. Their decision means the Stablecoin bill remains on the floor of the Senate for debate and cannot advance to a full vote. It is still unclear what will happen next for the proposed legislation.
