Visa leans in to crypto space

Payments provider Visa sees crypto playing a potentially important role in the future of consumer payments and is facilitating links between the old and new worlds of finance. 

Why it matters

Over 65 crypto platforms and exchanges have partnered to issue Visa credentials, according to Visa chairman and CEO Al Kelly, who told an earnings call that “We’re providing on-ramps for crypto players creating connectivity with fiat economies”.

Many of these card programs are offering crypto rewards, which, Visa vice-chairman and CFO Vasant Prabhu told CNBC, gives those consumers who are new to crypto and who may not be directly investing in it an opportunity to earn it as they spend regular currencies like the dollar. 

As well as introducing a wider audience to crypto, there are potential new directions for loyalty programs.

Context 

• In the quarter to end-December (Q1 fiscal 2022), Visa credentials and crypto wallets had more than 2.5 billion in payments volume (70% of the payments volume for all of fiscal 2021). 
• Visa sees that rapid growth as a signal that consumers see real utility in having a Visa card linked to an account at a crypto platform, enabling them to seamlessly access that liquidity and fund purchases. 
• It is also developing crypto API capabilities to enable central banks to connect Ethereum-based CBDCs (central bank digital currencies) with Visa rails through a wallet with digital issuance capabilities, so enabling consumers to spend with CBDCs at any Visa merchant. 

Key quote

“Our strategy is to be a key partner to provide the connectivity, scale, consumer value propositions, reliability, and security that is needed for crypto offerings to grow” – Al Kelly, chairman and CEO, Visa.

Sourced from Motley Fool, CNBC [Image: CardMapr on Unsplash]