In a groundbreaking move, Blackbird Labs, the restaurant loyalty platform founded by Ben Leventhal, has announced the launch of Blackbird Pay. This innovative system will enable participating restaurants to accept cryptocurrency payments, marking a significant evolution in the way diners settle their bills. Blackbird Labs, supported by heavyweights like American Express and Andreessen Horowitz (a16z), raised over $24 million last year, capitalizing on the growing interest in Web3 technologies.
The platform, which is operational in New York, San Francisco, and Charleston, was initially designed to reward diners with exclusive perks at their favourite restaurants. Blackbird Labs aimed to enhance customer loyalty while driving traffic and creating new revenue streams for the notoriously challenging restaurant industry.
According to sources, the introduction of Blackbird Pay expands this mission by allowing customers to use the $FLY cryptocurrency for their payments. Diners can earn $FLY tokens as loyalty points or purchase them within the Blackbird app using Coinbase’s USDC stablecoin. This dual approach not only enhances customer engagement but also provides a seamless, modern payment method.
Participating restaurants have a significant incentive to adopt Blackbird Pay, primarily due to the lower transaction fees. Traditional credit card fees can soar up to 3.75%, but with Blackbird Pay, restaurants will only incur a flat fee of 2% per transaction. This reduction in fees translates to substantial savings for restaurants on every transaction. In a statement to news sources, Blackbird Labs highlighted how this system enhances the dining experience by eliminating the need for diners to wait for the check. Instead, they can pay through the app and leave at their convenience, akin to having an old-school house account.
Blackbird Pay operates on the new Blackbird Mainnet, a layer-3 blockchain built on Coinbase’s Base chain. This layer-2 network provides a fast and cost-effective solution for transactions on the Ethereum blockchain, ensuring a smooth and efficient payment process.
Ben Leventhal, who has spent two decades in the restaurant industry and previously founded Resy and Eater, understands the unique challenges faced by restaurants. In an interview with news sources, Leventhal described the restaurant sector as a “humongous industry made up of tiny players.” Unlike the airline and hotel industries, which are dominated by large corporations, restaurants often lack the leverage to be individually profitable.
“For me, the best restaurants are not necessarily the ones with four stars, but the ones where you walk in and you just immediately understand you’re in exactly the right place,” Leventhal said. “As good as they are at creating that experience, they struggle with profitability.”
Leventhal pointed out the unpredictability of revenue growth in the restaurant business and the high fees associated with technology services, especially payment processing. “That’s where Blackbird comes in,” he explained. “We are endeavoring to build a platform in partnership with the restaurant industry that’s focused on rewards and payments. We believe these are the keys to significantly improving operating margins and overall strategy.”
Blackbird Labs: Vision and Future Prospects
Blackbird Labs’ vision with Blackbird Pay is to offer a win-win solution for both diners and restaurants. By integrating a cryptocurrency payment system, Blackbird Labs not only appeals to the tech-savvy, crypto-enthusiastic demographic but also provides tangible financial benefits to restaurant owners. The platform’s success in New York, San Francisco, and Charleston could set a precedent for a broader rollout, potentially revolutionizing the restaurant industry nationwide.
As Blackbird Labs continues to innovate, the introduction of Blackbird Pay is a testament to the company’s commitment to leveraging advanced technology to solve real-world problems in the restaurant sector. With the backing of industry giants and a clear vision for the future, Blackbird Labs is poised to make a lasting impact.
In conclusion, Blackbird Labs, through the launch of Blackbird Pay, is not just offering a new payment method but is reshaping the restaurant industry’s financial landscape. By providing a more efficient, cost-effective solution for payments, Blackbird Labs is ensuring that both diners and restaurants can enjoy a more seamless and profitable experience. The potential for growth and expansion is vast, and as Blackbird Labs continues to push the envelope, the future of dining looks brighter and more innovative than ever before.
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