JPMorgan: Desire for Crypto Payment Method Waning
Demand for the use of cryptocurrencies as a payment method is falling as the market has shed an estimated $2 trillion in value in less than a year, volumes have declined on many exchanges, and digital asset firms have collapsed.
“We saw great demand from our customers, let’s say until six months ago,” Takis Georgakopoulos, global head of payments at JP Morgan Chase & Co., said in a Bloomberg Television interview on Tuesday. – We see very little right now.
He added that the bank still offers the service for its customers who prefer to use crypto for payments.
See also: The new math for crypto payments
According to a recent PYMNTS study27% of crypto-owning consumers indicated they “probably” or “definitely” prefer to shop at merchants that accept crypto. People want the option even though ease of use due to volatility — and even customer mindset — is still evolving, PYMNTS reported earlier this month.
Georgakopoulos pointed out that crypto is becoming a major presence in the traditional gaming space, as well as in the metaverse, where there are a number of new opportunities, according to the report.
Jack Dorsey’s Block is an advocate for crypto’s promise as a means of payment despite the volatility of digital tokens. A decline in crypto payments has also been seen. Block collected $1.79 billion in bitcoin transactions last quarter, down 34 percent, Bloomberg reported.
Read more: Restaurants ill-prepared to meet the demand for crypto payments
Research from PYMNTS’ August study “Paying with Cryptocurrency: Can Crypto at the Checkout Become a Profit Center for Merchants?”, created in partnership with BitPay, shows that 56% of crypto owners are likely to use cryptocurrency to make purchases from restaurants or food delivery. services. The problem is that most businesses are still not ready to meet this demand, PYMNTS reported on September 13.
Regardless of the current situation, JP Morgan is still continuing its years-long embrace of digital assets and recently became one of the key backers of startup Ownera. The world’s largest bank also explored using blockchain for security settlements, Bloomberg reported.
New PYMNTS study: How consumers use digital banks
A PYMNTS survey of 2,124 US consumers shows that while two-thirds of consumers have used FinTechs for some aspect of banking, only 9.3% call them their primary bank.
