Bitcoin (BTC), while considered a store-of-value for many, may not be the case for all consumers. Recent data has shown that 46 Million Americans plan to use cryptocurrency for payment of groceries and real estate. In July, payments giant Visa revealed that more than $1 billion was spent on its cryptocurrency-enabled cards in the first half.
It shouldn't surprise that big brands such as Target , Home Depot, and Starbucks have begun to include Bitcoin in their balance sheets. As crypto payments become more popular and are easier to incorporate, smaller brands, aimed at women, are beginning to accept cryptocurrency to drive female adoption.
The beauty industry is betting on Bitcoin
The billion-dollar beauty industry, for example, has recently taken an interest in Bitcoin. Cointelegraph spoke with Ann McFerran who is the CEO and founder Glamnetic, a brand that creates magnetic eyelash products. She said that the company accepts Bitcoin, Ethereum, and Dogecoin (DOGE), thanks to a partnership with BitPay. McFerran claims that Glamentic was one of the first beauty brands founded by women to accept crypto payments.
McFerran said that she began investing in crypto currencies in 2017 but noticed that it was heavily male-dominated. McFerran made the point that research firm BDC Consulting found only 8% were female crypto users in 2019. McFerran launched Glamentic in July 2019 and was determined to include crypto payments into the brand to encourage women use cryptocurrency.
"Crypto payments are not widely accepted in the beauty industry." Glamnetic should be the first brand to accept crypto payments, as I believe in cryptocurrency and want to see more women enter the space.
McFerran also stated that she still believes that there is a stigma attached to crypto's use today. She said that it was not a secure method of payment. McFerran pointed out that Mt. McFerran noted that events such as Silk Road and Mt. I'm trying to educate others about crypto so that they understand the risks and what they might be missing.
Transacting in Bitcoin and other cryptocurrency for beauty products might encourage women to be interested in crypto, but this is only one part. Sanja Kon, CEO at Utrust, a crypto payment bank system, told Cointelegraph that education of women about crypto is dependent on the brand's ability reach their consumers with the right educational tools.
"Increasing awareness of cryptocurrency payments by beauty brands can help increase usage, but not necessarily increase awareness. It is important for women to feel comfortable with cryptocurrency payments. Brands should offer support and educational content to encourage adoption.
Kon claims that Utrust is helping to facilitate this movement by investing resources in educational plans with its merchants. McFerran noted that Glamnetic started making TikTok videos in order to educate consumers about cryptocurrency. This can have a significant impact considering that younger consumers are more likely than older consumers to own it. PYMNTS.com discovered that 27% of all millennials own or have owned one kind of cryptocurrency.
McFerran also stated that Glamnetic would be releasing a magnetic eyelash line inspired by Dogecoin in order to drive adoption. "I think people are more open to crypto if it becomes an entire beauty product."
Glamnetic is one of the first female-founded beauty businesses to accept cryptocurrency payments. However, there are a few larger cosmetic brands that have begun to incorporate crypto in other ways to encourage female participation.
Aubrey Strobel is the head of communications at Lolli, an online Bitcoin rewards platform. He told Cointelegraph that Lolli works with top retailers like Ulta and EM Cosmetics. Strobel stated that 30% of Lolli's users are women. Strobel stated that although women historically have been slower than men in this space, they still make the majority of household purchasing decisions.
Strobel stated that Bitcoin rewards offered by companies to customers are appealing to many shoppers, particularly women who wish to "stack the sats" while shopping online.
This idea is highlighted in a report by The Defiant, titled "Global Report on Women, Cryptocurrency, and Financial Independence." Christine stated that she sometimes learns how to manage cryptocurrency through small transactions. Christine stated that she had been building sats for a long time to accumulate small amounts Bitcoin. Christine added that she likes to drink coffee when traveling and buy other things with it.
Is Bitcoin going to take over the beauty industry?
Although it is too early to predict if crypto payments for beauty products would drive female participation in crypto, there has been a modest impact. McFerran stated that Glamnetic had already processed a few crypto transactions from female consumers. Cointelegraph spoke with Yuvi Alpert who is the founder and CEO at Noemie, a jewelry company which recently added crypto payments.
Despite this being the case, research shows that women are more likely to spend cryptocurrency on travel, leisure, real estate, furniture, and appliances. Although crypto payments are slow to be accepted in the beauty industry due to their limited acceptance, companies that incorporate cryptocurrency transactions will likely have a competitive edge.
Kon says that more companies are beginning to see the benefits of cryptocurrency as a method to pay for their goods and services.
They will be able drastically reduce their payment processing fee, because blockchain allows for the elimination of all traditional intermediaries such as banks and payment processors. These brands will also be able eliminate fraud and chargebacks, as well increase their revenue through reaching new customers.