Saturday, March 2

Visa customers paid $2.5 billion with crypto cards

Visa reported in its latest earnings call that its customers made $2.5 billion worth of payments with their cryptocurrency-linked cards. The figures are from the first fiscal quarter of 2022 and represent more than 70% of all fiscal year 2021 volume, indicating increased adoption of cryptocurrency payments. From October 1, 2020 to September 30, 2021, the company processed $3.5 billion in digital currency transactions through its crypto-linked cards, according to CNBC.

Visa introduces a universal payment channel for CBDC and stablecoins

Visa, cryptocurrency cards

Cryptocurrency-linked cardholders use them to pay for retail goods and services, restaurants, or travel. Vasant Prabhu, CFO of Visa, told CNBC that these figures indicate that consumers see utility in having a Visa card linked to an account on a crypto platform. Today, Visa’s crypto wallet partner network numbers 65. Coinbase, Circle, and BlockFi are a few. The number of merchants that accept cryptocurrencies as a form of payment reaches almost 100 million.

VISA certifies the value of crypto art with the purchase of a CryptoPunk

Despite the volatility of the crypto markets, the Visa manager affirms that the volume of payments continues to grow. “Crypto rewards are an important part of the value proposition for many of these card programs. Mainly for consumers new to crypto who are not directly investing in it, but are excited by the opportunity to earn crypto while spending fiat. We are watching these programs closely to see how they impact the rewards category as a whole,” Prabhu said. In this sense, Mastercard and the Gemini exchange agreed to launch a credit card in the USA that offers rewards in cryptocurrencies.

Visa bets on NFTs as a strategic tool for the creator economy

Stablecoins y NFTs

Visa also announced in December a consulting and advisory service to help financial institutions, retailers, and other businesses on cryptocurrencies and NFTs. The company is also developing products tied to stablecoins and CBDCs (central bank digital currencies). Last fall it introduced a universal payment channel compatible with all blockchains, stablecoins, and CBDCs. Visa’s intention with its “Universal Payments Channel” (UPC) is to be able to operate with any digital currency. Regardless of the format or channels where the transactions are made.

Visa recognizes cryptocurrencies as part of its payment network strategy

Last October, it also opted for NFTs as a strategic tool for digital creators to build their own businesses. Cuy sheffield, head of crypto at Visa, noted in a Twitter thread that NFTs have the potential to lower barriers to entry in the crypto space, so digital creators around the world can start their small businesses. NFTs allow creators to connect directly with their fans and collectors, facilitating the creation of economies and markets.

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