Visa, the leading payments processor, is diving deep into the world of cryptocurrencies.
On Wednesday, the payments giant announced the launch of a global crypto advisory service for clients who are mostly banks and financial institutions. The move comes on the backdrop of unprecedented growth in demand for crypto-assets and services.
The services offered by Visa will include educating institutions about cryptocurrencies, building dedicated crypto teams and strategies, enabling clients with digital offerings and payment processes, and managing backend operations.
The Need For Such a Move
Visa’s head of Crypto, Cuy Sheffield, told CoinDesk, “We think it’s a critical role for Visa to play to help be this bridge between banks and the crypto ecosystem. Every bank should have a crypto strategy.”
According to a global study conducted by Visa, nearly 40% of all crypto owners surveyed were likely to switch their primary bank account to one that offers crypto-related products in the future.
It’s evident that crypto assets are here to stay. Banks, financial institutions, investment houses and payment providers are at the core of this likely disruption. And Visa, quite cleverly, is tapping into this need from big institutions and corporations to strategise around crypto to stay relevant in the future.
American Bank UMB was named Visa’s first client benefiting from its crypto advisory services.
Cryptocurrency: A Threat And An Opportunity
Payment giants like Visa and Mastercard view crypto as an opportunity to grow beyond card payments. Within a span of one year, Visa has processed more than $3.5 billion in digital currency transactions through its crypto-linked card programs.
The recent move has been one of many such attempts to make inroads into crypto. In August this year, the company made some noise when it bought a CryptoPunk NFT. And recently, Visa invested in the US-based blockchain compliance firm TRM Analytics.
However, for card companies, crypto remains a key threat to their fee-dependant business model for enabling payments. And this could be the primary motivation for Visa to explore the space and embrace crypto innovations first-handed.
Disclaimer : Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. The information provided in this post is not to be considered as investment/financial advice from CoinSwitch. Any action taken upon the information shall be at user's own risk.
Table of content
Subscribe to Our Newsletter with exclusive content.