Visa, the world’s leading payment processor with millions of merchants in its network and hundreds of millions of users, might add cryptocurrencies to its payments network.
Visa Jumps on the Crypto Bandwagon
Visa, the multinational financial services corporation, might be joining the cryptocurrency bandwagon.
In the company’s fiscal first-quarter 2021 earning call, the CEO of the company, Al Kelly, said that they are in a position to make cryptocurrencies more “safe, useful, and applicable.”
In this space, we see ways that we can add differentiated value to the ecosystem. And we believe that we are uniquely positioned to help make cryptocurrencies more safe, useful, and applicable for payments through our global presence, our partnership approach and our trusted brand. We think of the crypto market in two segments.
This is where it got even more interesting as the CEO of Visa called Bitcoin digital gold.
First, there are cryptocurrencies that represent new assets such as Bitcoin. Second, there are digital currencies or stable coins that are directly backed by existing fiat currencies. We see all currencies in that first segment as digital gold.
He went on to explain that these are “predominantly held as assets that are not used as a form of payment in a significant way at this point.” He also explained that their strategy would be to work with wallets and exchanges “to enable users to purchase these currencies using their Visa credentials to cash out onto our Visa credential to make a fiat purchase at any of the 70 million merchants where Visa is accepted globally.
Visa, PayPal, Things Are Looking Serious
Visa is far from being the first company that eyes cryptocurrencies as a legitimate payment method, despite the regulatory hurdles that riddle the space.
Last year, PayPal, the leading online payment processor, said that it will allow its customers to hold, buy, and sell Bitcoin and other cryptocurrencies using fiat. Staying true to its words, the company did so and even saw its trading volumes skyrocket.
Indeed, 2020 was a good year for cryptocurrency adoption. Besides the above, we saw big public companies such as MicroStrategy put BTC on their balance sheets, pushing institutional adoption to a new level. As it seems, 2021 will perhaps be no different.
Source Click Here cryptopotato
Visa reaffirms commitment to crypto payments & fiat on-ramps
The payments giant is bullish on stablecoins, but may be overlooking the potential of DeFi
During the Visa Q1 earnings call on Thursday, chairman and CEO Al Kelly devoted a portion of his comments to reaffirming the financial giant’s commitment to crypto payments and onramps, as well as explaining “how Visa thinks about crypto in general and our approach.”
The financial services firm with over $72 billion in assets as of 2019 has been aggressively pursing crypto payments as of late, including by way of partnerships enabling crypto debit cards, and investing Zap, a crypto payments startup. Additionally, earlier this month Visa was forced to abandon a $5.3 billion acquisition of payments platform Plaid on antitrust grounds.
Thursday’s comments make it clear that Visa still has long-term plans in the sector, and that the company believes itself to be in an excellent position to pursue them. According to a transcript of the call, Kelly said “we believe that we are uniquely positioned to help make cryptocurrencies more safe, useful and applicable for payments,” by virtue of Visa’s size, integrations, and brand recognition.
Fans of Ethereum and the explosive growth of DeFi might be taken aback by the company’s somewhat antiquated view on smart contract platforms, however.
Kelly said that Visa groups blockchain assets into two categories: “cryptocurrencies that represent new assets such as Bitcoin” and serve as a store-of-value, and “stable coins that are directly backed by existing fiat currencies” which are more routinely used for payments.
For store-of-value coins, Kelly said that Visa will angle to serve as a fiat on-ramp:
“Our strategy here is to work with wallets and exchanges to enable users to purchase these currencies using their Visa credentials or to cash out onto our Visa credential to make a fiat purchase at any of the 70 million merchants where Visa is accepted globally.”
When it comes to stablecoins, however, Visa is taking a much more bullish stance, calling the cryptocurrencies “an emerging payments innovation that could have the potential to be used for global commerce, much like any other fiat currency,” and said that public blockchains can be thought of as payment rails similar to RPT or ACH networks.
The company also told investors that Visa would be poised to take advantage of any crypto that emerges as a dominant force in payments due to relationships with wallet providers such as “Crypto.com, [BlockFi], Fold and BitPanda,” as well as a possible direct integration with their 160-currency payments network.
The focus on payments echoes similar sentiments expressed by JPMorgan Chase executives, who also appear to be overlooking DeFi’s remarkable rise throughout 2020.
Source Click Here cointelegraph
Visa Could Add Crypto to Its Payments Network, Says CEO
While the financial services giant already partners with crypto wallets, the next step would put Bitcoin on equal footing with the 160 fiat currencies on Visa’s network.
By Andrew Hayward 3 min read
VISA ADDED FOLD TO ITS FAST TRACK PROGRAMME EARLIER THIS YEAR. IMAGE: SHUTTERSTOCK
- Visa’s CEO says the firm could support certain cryptocurrencies directly.
- Currently, Visa partners with 35 different crypto wallets and platforms.
- Visa previously laid out a platform-agnostic approach to supporting crypto.
Global financial services juggernaut Visa already has its fingers in cryptocurrency via wallet and platform partnerships; digital asset companies BlockFi, Fold, and Crypto.com already issue Visa-branded products. However, CEO Alfred Kelly now suggests that cryptocurrencies could run directly on the Visa network in the future.
In Visa’s fiscal Q1 2021 earnings call yesterday (via The Motley Fool), Kelly took a moment out of his introductory statement to specifically touch on crypto and the opportunity he sees in the space. He detailed Visa’s case for being the largest financial services brand in the industry via its partnerships with 35 platforms and wallets
“In this space, we see ways that we can add differentiated value to the ecosystem,” said Kelly. “And we believe that we are uniquely positioned to help make cryptocurrencies more safe, useful and applicable for payments through our global presence, our partnership approach and our trusted brand.”
Kelly sees the industry split between two types of coins:and other variants of “digital gold” that are “predominantly held as assets,” and then and fiat-backed coins such as central bank digital currencies (CBDCs). For the former, Visa believes the best course of action is to continue with partnerships and provide users a way to cash out of their assets as desired, using their Visa credentials at some 70 million worldwide merchants.
As for the latter: “These are an emerging payments innovation that could have the potential to be used for global commerce, much like any other fiat currency,” said Kelly. “We think of digital currencies running on publicas additional networks just like RTP or ACH networks, so we see them as part of our network of networks strategy.”
“It goes without saying, to the extent a specific digital currency becomes a recognized means of exchange, there’s no reason why we cannot add it to our network, which already supports over 160 currencies today,” he added. (Those are fiat currencies.)
Visa CEO Looks Ahead at the World of Crypto
Alfred Kelly, CEO of payments giant Visa, said that his company sees big potential in digital currencies in the years to come, especially in developing markets with significant numbers of unba…
2 min read
It’s a clearer version of a statement that Kelly made in November, at which time he suggested that Visa “could see digital currencies running on the Visa network on a more regular basis,” albeit “a number of years out.”
Visa previously claimed that it doesn’t want to play favorites with cryptocurrencies, but rather support coins and providers more broadly. It’ll be interesting to see whether that approach changes as stablecoin and CBDC adoption increases in the months and years to come.
Source Click Here decrypt