American Express and Crypto: A Careful Dance

In a revealing conversation at the European Blockchain Convention 2022, Gonzalo Pérez del Arco, the director of government affairs for Southern Europe at American Express, made it clear: crypto payments might not be the golden ticket just yet. According to Pérez, the current landscape is akin to wearing socks with sandals—it’s just not a good look for the payment giant.

Why is Crypto Costly? Let’s Break It Down

Pérez pointed out several sticking points that make crypto payments less than appealing in today’s market. Here’s a breakdown:

• High Transaction Costs: The fees associated with cryptocurrency transactions can rival that of a fancy dinner for two at a Michelin-starred restaurant—without the dessert!
• Merchant Skepticism: Not all merchants are on board with accepting digital currencies; it’s like trying to convince your grandma to use an iPhone.
• Regulatory Hurdles: With regulations tightening in Europe, navigating the crypto waters can feel more like sailing a leaky boat.

A Bullish Outlook on the Future

Despite the current challenges, Pérez remains optimistic. He noted, “We’re keeping our eyes on the prize and will explore crypto payments when the time is right.” American Express acknowledges that this shift is inevitable, especially as competitors like Visa and Mastercard are jumping headfirst into this new digital frontier.

American Express is Taking Cautious Steps

Rather than diving directly into crypto payments, American Express is prioritizing less risky avenues, such as loyalty reward programs. Their partnership with Abra to launch a crypto rewards card shows a strategic yet cautious approach:

“The rewards program presents a much lower risk compared to direct payment activities,” Pérez explained.

The Competition: A Bitcoin Rush

While American Express is taking baby steps, rivals are sprinting ahead. Visa is busy integrating crypto payments into its network, allowing customers to spend their digital assets at thousands of merchants. Reportedly, they recorded a jaw-dropping $1 billion in crypto spending in Q1 2021! Meanwhile, Mastercard is also upping the ante by offering direct NFT purchases to its users.

Conclusion: The Changing Payment Landscape

As the world of finance continues to evolve rapidly, American Express’s methodical approach to crypto could turn out to be a master stroke or a missed opportunity. Time will tell if consumers will be ready to ditch cash in favor of crypto, but for now, the company seems content to watch its competitors from the sidelines—socks still firmly on!