U.S. homebuyers apparently aren’t all that interested in paying their mortgages in cryptocurrencies like bitcoin.
United Wholesale Mortgage, which made its public debut in January via a special purpose acquisition (SPAC) merger, began piloting crypto payments in August in a first for the industry. But CEO Mat Ishbia now tells CNBC that after testing it out, the company decided it wasn’t worth it.
“Due to the current combination of incremental costs and regulatory uncertainty in the crypto space, we’ve concluded we aren’t going to extend beyond a pilot at this time,” said Ishbia.
The Michigan-based mortgage company tried three different types of crypto – bitcoin, ether, and dogecoin – and multiple different borrowers to see how the process would work. UWM successfully accepted its first-ever cryptocurrency mortgage payment in September and five more in October.
But ultimately, the demand wasn’t there. Ishbia tells CNBC that borrowers “liked it” and “said it was cool” but having the option to transact in crypto “wasn’t a driver.”
“There was not enough demand at the end of the day to really push the envelope too hard,” he said.
Crypto. The buzzword you hear everywhere from the news to friends hyping it up. Has the craze gone mainstream and reached businesses?
Big names like Microsoft, AMC, Starbucks, and AT&T are in, but what do small businesses think? The Strawhecker Group (TSG) used new survey data from nearly 600 small businesses in the U.S. to illustrate their knowledge, attitudes, and acceptance of cryptocurrency.
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Payments professionals across the ecosystem will find this infographic to be a great resource as the market continues to evolve. Are you working with merchants on a crypto strategy?