IKEA Completes First Ever E-Invoice Using Smart Contracts using Tradeshift, Monerium

IKEA, Swedish-based furniture and home accessories retailer, has embraced blockchain technology and the use of cryptocurrency payments by smart contracts. 

IKEA has announced the completion of its first digital currency transaction to settle an invoice. The company has paid for a bill using a token that is built on the Ethereum blockchain with the help of Tradeshift, Monerium. This initiative marks a significant step for cryptocurrency adoption, considering that it is now applicable at large-scale levels. 

The parties involved in the transaction included Nordic Store, the purchaser and IKEA Iceland, the supplier. Nordic Store, an Icelandic retailer, purchased goods from IKEA Iceland using a business-to-business payment platform, Tradeshift. IKEA was able to settle the e-invoice with digital currency with the help of Tradeshift, Monerium, a financial technology company seeking to make digital currency not only accessible but also secure and simple to transact.  

The co-founder of Tradeshift and General Manager of Tradeshift Frontiers, Gert Sylvest, had the following to say during the company’s press release:

Smart Contracts in the Financial Sector

“Programmable money regulated by governments will become the foundation for e-commerce payments because they enable so-called smart contract.” 

Sylvest added that smart contracts serve the purpose of lowering administrative hurdles in B2B cross-border deals. In addition, it helps in building new financing models that ease cash flow processes for businesses and boosts credit access. 

Therefore, smart contracts will generate smart invoices for B2B operations. Sylvest further added:

 “We see smart invoices not just as useful for lowering administrative hurdles in business-to-business (B2B) Cross-border transactions, but for building new financing models that make it easier for enterprises to improve access to credit and improve cash flow. That is why we have built the world’s first smart invoice and now settled it with licensed digital cash together with Monerium.” 

It was only in June 2019 that the Financial Supervisory Authority of Iceland (FME) approved Monerium, making it the first and only e-money institution in Europe. Ever since, the company has focused on changing how operations in the financial landscape are done by ensuring fast and affordable transactions.