American Express weighs the prospects for crypto payments

Crypto payments will become a reality in the future, but at present they are economically inefficient. In an interview with Cointelegraph, Gonzalo Pérez del Arco, American Express’s director of government affairs for Southern Europe, said.

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According to him, crypto payments are not yet viable for a number of reasons, including high transaction costs and merchants’ reluctance to accept digital assets.

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He noted that the company is keen to use cryptocurrencies and is working in this direction.

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“Because this is the right direction that competitors in the market are embracing,” he added.

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Pérez del Arco said American Express is making a “big bet” on cryptocurrencies, with investments and development of several use cases through its venture arm, Amex Ventures.

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As an example, he cited the recent launch the Abra platform cryptocurrency gift card under the Membership Rewards program.

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The American Express spokesperson clarified that the decision not to delve deeper into crypto payments for now is largely due to regulation.

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“Membership rewards are relatively straightforward to operate and carry relatively low risk compared with other cryptocurrency-based payment transactions,” he stressed.

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As reported, in 2020 American Express invested in FalconX, an institutional-focused cryptocurrency platform. In 2021 the payments company increased its investment in a Series C round to $210 million.

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