“It kind of was actually a last minute surprise,” said Michael Cammarata, the CEO, and co-founder of Schmidt, on Power Lunch. “We got a lot of consumers that are like, Can we pay with Bitcoin? We were playing around with the idea a little bit, and our tech team was like, ‘Should we do this or should we not do it.’”
Cammarata, however, admitted that he wasn’t “that shocked” when consumers went to Schmidt’s Naturals social media to request for the Bitcoin payment option. “We have a lot of millennials and highly socially active consumers,” said Cammarata.
Consumers can, therefore, purchase natural products like deodorant, soap, and toothpaste with Bitcoin. Schmidt’s Natural uses a cryptocurrency payment provider called BitPay to facilitate these online payments.
Cammarata added that, while the value of one Bitcoin is significantly larger than the price of personal care products, through BitPay, Schmidt’s Natural allows consumers to purchase small fractions of a Bitcoin. Most shoppers, however, use the cryptocurrency payment to buy yearly or monthly subscriptions instead of small one-off purchases. These subscriptions are also “totally customizable,” which allow customers to order on a longer term.
According to recent purchase orders, Cammarata mentioned that most people who use the cryptocurrency payment system are parents who are purchasing yearly subscriptions of large packages of toiletries for their children in college.
Schmidt’s Natural may offer other cryptocurrency options
Schmidt’s Naturals is the first company from the Unilever Group to accept cryptocurrencies like Bitcoin. While the company also sells their product at Target, Bloomingdale’s, Macy’s and drug stores across America, Bitcoin payments are only offered online.
Unfortunately, Bitcoin is the only cryptocurrency Schmidt’s Naturals accepts. Cammarata, however, mentioned that the company might expand and include other popular cryptocurrencies like Ripple and Ethereum.
“We’re going to start with Bitcoin and see how it goes,” said Cammarata. “If the demand is there we’ll expand. Whether it be a scent or payment method, we are very highly engaged with our consumer.”
BitPay adds Bitcoin Cash as a payment option
Schmidt’s Naturals Bitcoin payment service provider, BitPay, has become a very popular payment service, especially when Bitcoin rose in popularity over the past few years. BitPay announced in March 2018 that they also allow merchants to accept Bitcoin Cash as a payment option.
BitPay mentioned on their blog that, “By adding functionality for new payments blockchain like Bitcoin Cash (BCH), we’re expanding the reach and scale of our merchants’ BitPay checkout experiences.”
The integration is excellent news for cryptocurrency supporters. Bitcoin Cash in one of the top five cryptocurrencies. According to Coinmarketcap, it currently has a market capitalization of $17.5 billion and is worth $1,025.60 as of May 25, 2018.
The payment service provider has, however, experienced a bit of controversy last month in April 2018. Newegg, a Canadian-based online electronics and computer company, had accused BitPay of charging more when it comes to network costs. “Sad to see BitPay lie about “network cost” of both Bitcoin and bcash (also sad to see they contribute to confuse newbies by calling bcash Bitcoin). I used to promote this service among merchants, never again,” said Jorge Timon, a developer from NewEgg.