Coinbase CEO Brian Armstrong took to Twitter to complain about his recent user experience with two popular legacy fiat payment apps. Armstrong reportedly tried to send a payment to a colleague and was denied twice, highlighting the need for crypto alternatives.
Brian Armstrong gets caught up with AML/KYC issues
Brian Armstrong was not able to make a peer to peer payment to his friend using two different but extremely popular payment apps, Paypal, and Jack Dorsey’s Square Cashapp.
Trying to send money to pay back a friend. Paypal tells me “recipient is unable to receive money” and SquareCash tells me my bank declined the payment. This is in the U.S. where these services work best. Imagine rest of the world. pic.twitter.com/iBPzPtlAy6
— Brian Armstrong (@brian_armstrong) February 12, 2020
Armstrong pointed out that he is facing these difficulties in the US, the world’s largest and most developed economy. He also pointed out that residents of smaller less economically developed nations would like face even larger obstacles than he had.
Further on in the thread, Armstrong elaborated on his take, explaining that regulatory restrictions are often to blame for lackluster customer experiences, as the companies themselves must comply with regulations and often have their hands tied.
While crypto alternatives are still very early, and have similar problems with UX, Armstrong believes that crypto payments will be the payments alternative that “just works” in the future.
Crypto has it’s own (numerous) UX challenges of course. But by building on new underlying infrastructure there is an opportunity to make things better, and finally have payments that “just work”
Ripple-backed remittances service, Moneygram also offered Armstrong a promo code in an effort to shill their services to Armstrong’s Twitter audience.