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Cryptocurrency is coming to restaurants, a market that has already become hotly contested by a range of payments companies. Blaqclouds Inc., a crypto platform based in Los Angeles, announced on Friday DineWithCrypto, aimed squarely at consumers looking to order meals for delivery or pickup. DineWithCrypto has already connected to 190,000 restaurants in and outside of the United States and is set to launch on April 11, says Blaqclouds, which is promoting the launch with buy-one-get-one-free offers.
For processing, the company is relying on Zeus Blockchain Partners, a crypto-processing platform it acquired in December, to support acceptance of more than 300 digital currencies. Zeus operates ZEUSxPay, a crypto-payments network.
The move into restaurants is aimed at bringing cryptocurrency into the realm of day-to-day spending, company officials say. “By connecting diners with a vast network of restaurants and facilitating crypto payments through ZEUSxPay, we’re not only enhancing the dining experience but also promoting the adoption of digital currencies in practical, real-world scenarios,” said Blaqclouds president Shannon Hill, in a statement.
To attract consumers, the company promises what it calls an “intuitive” interface that lets consumers browse among local restaurants, order a meal, and pay, all from a mobile device. The platform says it also sends diners updates that track meals from preparation to delivery.
The U.S. restaurant market, which hit $1.09 trillion in sales in 2023, has already attracted a wide range of processors. Experts advise that, with heavyweight payments processors like Shift4 Payments Inc., Toast Inc., and Block Inc. already competing for restaurateurs’ loyalty, crypto players can’t afford glitches. “The universal factor is, it can’t be any harder than it is now to pay with a credit card,” notes Cliff Gray with Gray Consulting Ventures LLC.
Gray also warns that the constant swings in value for Bitcoin, the leading digital currency, and most other cryptocurrencies, could present issues for restaurants and consumers alike. “The price on the menu could fluctuate minute to minute,” he says, advising that stablecoins could be a preferable option.
On the other hand, while crypto payments will carry a transaction fee, that levy is likely to be significantly less than the interchange and other charges restaurants pay for credit card transactions, Gray notes. “It does move the needle,” he says. “It would be far, far cheaper for the restaurant, and you eliminate card fraud.”
