AXA will now permit its private clients to start making their premium payments using Bitcoin. Customers can only use Bitcoin to pay for non-life products.
AXA, the largest insurance company in Switzerland, has announced that it will start accepting Bitcoin payments. According to the announcement, only private customers will have access to this new payment option.
AXA will transform its operations with this move
AXA will become among the first insurers to offer Bitcoin as a payment method to their clients. Customers will have access to this alternative from the beginning of April. Customers who intend to use Bitcoin need a reference number and the Bitcoin amount that will equate to the amount owed.
According to the head of Open Innovation at AXA, the new move will enable AXA to become responsive to their client’s demands. This solution will have a significant role in how the firm is adopting new technologies.
The transactions involving Bitcoin will not include a transaction charge. However, a fixed exchange rate will be provided, which will be updated after a specific time. AXA also plans to incorporate other currencies in its payment systems soon.
The rise in the use of Bitcoin
Bitcoin is the largest cryptocurrency in the world. The use of this crypto has increasingly gained popularity. Major financial institutions have adopted Bitcoin, and many companies accept this crypto as a means of payment. Tesla was among the leading companies to initiate the use of Bitcoin as a method of payment.
AXA also revealed that it had conducted market research in the last quarter of 2019, including participants aged between 18 and 55. From the research, the firm concluded that a third of people were inclined towards cryptocurrencies. The COVID-19 pandemic also increased the need for digital investments, which positively impacted the crypto market. The increased demand for cryptocurrencies from customers had fuelled AXA’s decision to accept Bitcoin as a method of payment.
Bitcoin is currently trading at slightly above $61,000. It recently reached its highest price of $64800, a 120% increase compared to its price at the beginning of the year. The Bitcoin network currently has a market cap of more than $1 trillion, accounting for more than 50% of the entire crypto market.
Bitcoin prices are being pushed by market demand. Institutions are accumulating the amount of Bitcoin that they hold. Grayscale has added over $41 billion worth of Bitcoin in its trust. Tesla and MicroStrategy also recently bought additional Bitcoin.