Blackbird Labs Introduces Web3 Payment Platform for Restaurant Savings

Key Insights:

• Blackbird Pay slashes restaurant transaction fees to 2% and offers faster settlements via the Blackbird Flynet blockchain network.
• Diners can pay with FLY tokens, credit/debit cards, or US Dollar Coin through Blackbird Pay’s user-friendly app.
• Blackbird Labs raises $24M to revolutionize restaurant payments and customer engagement with innovative blockchain-based solutions.

Blackbird Labs, a hospitality-tech startup founded by Ben Leventhal, has launched a new Web3 payments platform for restaurants, called Blackbird Pay. This announcement, made on July 30, revealed that the platform is built on Blackbird’s new blockchain network, Blackbird Flynet. The platform aims to address the ongoing issue of shrinking margins and eroding cash reserves faced by restaurants by offering an end-to-end payments and check settlement network.

Reduction of Transaction Costs

Blackbird Pay is designed to significantly cut settlement times and reduce transaction costs for restaurants, bringing the average cost down to approximately 2% per transaction. This is a substantial decrease compared to the current transaction fees, which can be as high as 4%. 

Diners using Blackbird Pay have the option to pay with FLY, Blackbird’s native token, which is issued as a reward on the platform. The platform supports payments from credit or debit cards, FLY tokens, or US Dollar Coin, all through the Blackbird app.

In recent years, restaurant technology has struggled to advance in the area of payments, which often remain expensive, cumbersome, and technologically opaque. Blackbird Labs’ founder, Ben Leventhal, emphasized this issue, highlighting the lack of progress and the need for innovation. 

Blackbird Pay offers a solution by enabling diners at member restaurants to pay directly through the app. The app also introduces a unique Guest Value Score for each user, allowing restaurants to develop custom points, benefits, and perks programs based on this score.

Web3 Startups and the Dining Industry

The dining industry is increasingly embracing Web3 startups, which offer potential solutions for cost reduction, rewards program management, and gamification. Among these startups is DevourGO, a Web3 food delivery service. 

According to the National Restaurant Association, US restaurant sales are projected to exceed $1 trillion in 2024, marking a significant milestone for the industry. Roni Mazumdar, co-owner of Unapologetic Foods, noted that platforms like Blackbird could enable restaurants to save thousands of dollars each month in processing fees.

Additional Developments by Blackbird Labs

Beyond payments, Blackbird Labs is developing additional applications to support restaurants, including messaging and discovery programs. These initiatives, such as Blackbird Breakfast Club and Bar Blackbird, are designed to drive traffic to restaurants during slower periods. The company’s innovative approach has attracted significant investment, raising $24 million in a Series A venture funding round led by Andreessen Horowitz.

Currently, several high-profile restaurants have adopted Blackbird’s platform. These include Barbuto, Crown Shy, Momofuku, Nom Wah, and Saga in New York; Leon’s in Charleston; and Birdsong in San Francisco. The company’s initiatives aim to transform the restaurant industry’s approach to payments and customer engagement through advanced technology solutions.