Cardtronics Identifies Crypto, P2P Payments As Business Risks

5. March 2018.








As new payment technologies — such as digital coins make it less necessary for people to handle cash, Cardtronics said cryptocurrencies could impact its business. The disclosure was made in a 10-K report to shareholders and was filed with the U.S. Securities and Exchange Commission (SEC), CoinDesk reported.

“New payment technology, such as Venmo, Zelle and virtual currencies such as bitcoin or other new payment method preferences by consumers, could reduce the general population’s need or demand for cash and negatively impact our transaction volumes in the future,” the company wrote in the filing.

The company added that changes in the industry could impact its bottom line: “The proliferation of payment options and changes in consumer preferences and usage behavior could reduce the need for cash and have a material adverse impact on our operations and cash flows.”

The news comes as JPMorgan Chase has labeled cryptocurrencies a threat to its business in its annual 10-K filing. The bank’s comments mirror those by Goldman Sachs.

JPMorgan Chase listed cryptocurrency’s impact on payment processing in its “risk factors” section. As a result, the bank might have to introduce new products or modify existing offerings.

“Both financial institutions and their non-banking competitors face the risk that payment processing and other services could be disrupted by technologies, such as cryptocurrencies, that require no intermediation,” the bank wrote in the filing. “New technologies have required and could require JPMorgan Chase to spend more to modify or adapt its products to attract and retain clients and customers or to match products and services offered by its competitors, including technology companies.”

The news comes after Bank of America (BoA) reported that cryptocurrency could represent a substantial threat to its business in its annual filing with the SEC. The second-largest bank in the United States by assets, BoA issued a warning that was the first of its kind for the institution — it has never in the past warned investors about a technology’s potential as a risk factor.

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