Melbourne off-road vehicle manufacturer Tomcar Australia has been paying its overseas suppliers in Bitcoin to avoid currency exchange and banking fees.
Tomcar works with local supplier MTM Auto to manufacture and supply the two- and four-seater vehicles in Australia. About 40% of parts are imported from overseas.
The partners have used Bitcoin to pay suppliers in Israel and China for the past 8 months; today Tomcar said it would begin accepting Bitcoins from customers as well.
Tomcar will use the CoinJar payment gateway to accept Bitcoin payments, alongside its traditional AUD-based business.
“Currently fluctuation adds uncertainty and fluctuating costs of imports,” Tomcar co-founder and CEO David Brim said.
“Bitcoin allows us to make international payments without the costs involved with currency exchange and banking fees.
“If we use Bitcoin ourselves, it makes sense to accept it from customers too.”
CoinJar calculates Bitcoin exchange rates and reconciles payments, including GST, to Tomcar in real-time, so all Tomcar’s earnings remain in AUD and it doesn’t have to worry about the virtual currency’s volatility.
Tomcar still pays a majority of its suppliers in Australian dollars, US dollars and Chinese RMB but Brim said the company was “actively exploring using Bitcoin” with more overseas suppliers.