Blackbird CEO Makes Case for Crypto Payments in Restaurants

Ben Leventhal, founder and CEO of restaurant rewards company Blackbird, believes that cryptocurrency could help lower payment costs for restaurants. He testified before a U.S. House subcommittee about the benefits of digital currency for small businesses like restaurants.

According to Leventhal, credit card processing fees are one of the biggest expenses for restaurants, with swipe fees being their third largest expense after food and labor. He said that cryptocurrency and the blockchain could help lower these costs by cutting out middlemen.

Blackbird's business model already incorporates crypto payments, which can lower restaurants' processing costs by more than half. Leventhal explained that under the traditional system, a $4.20 coffee at a local cafe would cost the restaurant 6% in processing costs, but using Blackbird it would be 2.5%.

Blackbird is also developing technology that could bring down these costs even further, with its blockchain payments network, FlyNet, allowing developers and restaurants to build custom apps on the platform. In exchange for contributing these apps, restaurants could get lower processing fees, 'perhaps as little as 1.5%,' Leventhal said.