Paying insurance contributions in Bitcoin is now possible, at least in Switzerland. AXA group accepts this new payment method, but not yet other cryptocurrencies.
Almost all insurance contracts in BTC for AXA
This is a natural adaptation to growing consumer demand. Insurance recalls that a 2019 study of 18-55 year olds already highlighted the growing interest in these digital currencies. The pandemic has also accelerated this trend, as it accelerates digital transformation more broadly. As a result, AXA specifies that its customers, in Switzerland for the moment, will be able to pay their bills in BTC - and only in Bitcoin crypto.
But what about the cost?
To offer this new service, AXA relies on partners. Payment is thus made through the inapay user interface. As for the processing of the transaction, it is handled by Bitcoin Suisse. To be noticed that, AXA will not be holding any Bitcoin it receives on its balance sheets. Instead, the Bitcoin will go into the hands of the crypto broker.
Even if AXA itself is not adding any fees for Bitcoin payments, AXA will receive a commission of 1.75% to cover blockchain, foreign exchange and other transaction costs because Bitcoin Suisse incorporates its own commission of 1.75% when it calculates Bitcoin/Swiss franc exchange rates for AXA customers.
What will be the next step now for AXA?
New payment options will be rolled out soon, including TWINT, Switzerland’s digital cash. The insurer could also accept other cryptocurrencies. For now, AXA wants to gain some experience with Bitcoin before deciding what to do next.
