In the ever-evolving landscape of cryptocurrency adoption, the auto industry has become a focus of interest. Recent reports suggested that Honda, a major automobile manufacturer, was now accepting cryptocurrency as a form of payment for their vehicles. However, the truth appears to be more nuanced. Honda itself does not directly accept cryptocurrency payments, but there is a workaround through a third party, FCF Pay.
Honda spokesperson wades in on the erroneous assertion
In early October, several publications erroneously reported that Honda had begun accepting cryptocurrencies as a means of payment for their cars. However, American Honda swiftly debunked these claims, stating that they do not accept cryptocurrency as a form of payment. This clarification came directly from an American Honda spokesperson who stated that the recent reports regarding a change to this policy are not correct. While Honda’s official stance on cryptocurrency payments remains unchanged, there are alternative options for those eager to purchase a Honda vehicle using cryptocurrencies.
FCF Pay is the intermediary that facilitates the use of cryptocurrencies to buy cars, including those from Honda. According to Joseph Parkin, the Chief Operating Officer of FCF Pay, Honda isn’t the only car brand available on this platform. There is a list of other car manufacturers, including names like Mercedes, BMW, Ford, Nissan, and Mitsubishi, that can be purchased using cryptocurrencies through FCF Pay. The core of this system relies on a payment aggregator that operates on the same payment rails used for cash payments in bank branches.
In essence, cryptocurrencies act as a form of digital cash or the cash of the internet within this ecosystem. However, it’s essential to note that only those companies integrated into FCF Pay’s bill payment aggregation system are currently available for cryptocurrency purchases. While FCF Pay currently operates within the United States, there are expansion plans. FCF Pay is actively working with partners to facilitate crypto-to-fiat bill settlements in Mexico, various Latin American countries, multiple African nations, and across Asia.
This expansion aims to bring the convenience of cryptocurrency payments to a more global audience. The bill payments system by FCF Pay went live in September 2023, enabling customers to purchase products using cryptocurrencies such as Bitcoin, Ethereum, XRP, USDT, USDC, and others, with a fee of $3 plus a 2% charge. Joseph Parkin, the COO of FCF Pay, expressed the company’s mission to onboard companies and corporations of every size and in every sector for direct crypto payments, and hope that governments around the world open their eyes soon to the benefits of making it easier for companies to accept crypto payments.
Digital assets and the evolving payment infrastructure
FCF Pay has not entered into partnerships with automobile manufacturers like Honda to enable cryptocurrency payments for their cars. Instead, their system allows customers to make payments with cryptocurrencies, but the companies listed on their bill payments system receive fiat currency via their payment aggregator partner. This setup allows for flexibility in payments and opens up possibilities for consumers interested in using their cryptocurrencies for everyday purchases, such as buying a car. The world of cryptocurrencies is not without its challenges and controversies, and FCF Pay has had its share.
Notably, FCF Pay’s X (formerly Twitter) account was suspended on October 5, and this suspension has been attributed to accusations based on fake news circulating about the company. Joseph Parkin noted that the company was accused of claiming partnerships with the companies on our bill payments system, whereas we were trying our absolute best to dispel these misrepresentations from other news sources. The situation was exacerbated by what FCF Pay describes as “bot-like interactions” on their X account in the days leading up to the suspension.
There are suspicions that this activity may have been an attempt by competitors or other supporting communities to get the account suspended. In response to this challenge, FCF Pay is considering a rebranding effort. Parkin stated that the good news is that they are in the process of rebranding anyway as they lead up to their mobile app release at the end of the year. The firm will simply accelerate the process of switching over to the new branding if the FCF Pay account doesn’t get unblocked soon. This approach exemplifies the increasing integration of cryptocurrencies into everyday transactions, offering an alternative payment method for consumers in the ever-evolving financial landscape.
