It’s well-known that – depending on the use case – cryptos are making some strides in mainstream commerce. On the retail side of the equation, we’ve seen announcements from companies like PayPal and Tesla that they’ve brought – or will be bringing – bitcoin acceptance into the mix.
PayPal, for example, has said that crypto will be spendable worldwide at tens of millions of merchants.
See Also: PayPal Becomes Latest Big Tech Firm To Hop On The Crypto Bandwagon
And, as of this week, we’re seeing indications that bitcoin will be accepted, at least in some quarters, for payments related to some of the biggest big-ticket items: namely, mortgages.
As reported by media outlets, including CoinDesk, United Wholesale Mortgage will look to accept crypto for payments, aiming to have that functionality in place by the end of the year. In a conference call with analysts, discussing second-quarter results, management stated that the firm would be the first mortgage lender in the country to begin accepting crypto for mortgage payments.
Walk Before Running
Separately, in an interview with the Detroit Free Press, CEO Mat Ishbia gave a bit more granular detail into the roadmap that might lie ahead. “I think we’re starting with bitcoin, but we’re looking at Ethereum and others,” Ishbia said. “We’re going to walk before we run … that’s the plan. Obviously, there are no guarantees — we’re still working through some details.”
The plans were announced amid a quarter that saw mortgage volume for the company at $59.2 billion in the quarter.
The mechanics of making mortgage payments in bitcoin have yet to be disclosed. Would it be a process where bitcoin is converted into fiat, which is then used to make a payment? Is there an option to choose whether to make a transaction/payment using traditional bank accounts one month, and then revert to a bitcoin-sourced payment the next? Would the mortgage lender hold bitcoin on its own balance sheet if a transaction were to be settled directly in that crypto? All of these questions, of course, tie into how stakeholders would account for the volatility inherent in the cryptos themselves – how they affect the value of a transaction and the impact on a lender’s balance sheet.
There’s at least some precedent for cryptos’ use in mortgage activity. As reported earlier this month, the Partido Popular (PP), a political party in Spain, has introduced a bill that would, among other things, let consumers pay their mortgages with crypto. In addition, investors would be able to use crypto as they invest in mortgage pools.
The reports come as consumers are increasingly looking to use crypto in everyday spending. As many as 60 percent of consumers surveyed recently by PYMNTS want to make purchases using cryptocurrencies, and more than half of respondents would like to use the digital offerings to make big purchases rather than just cashing out of their holdings.
See Also: Report: Nearly 60 Pct Of Consumers Want To Buy Stuff With Crypto
We’re always on the lookout for opportunities to partner with innovators and disruptors.
Learn More