Visa Records Over $2 Billion in Transactions for Crypto-Linked Cards in the First Quarter of 2022
In the first fiscal quarter of 2022, Visa’s crypto-linked cards processed $2.5 billion in transactions.
Despite the industry’s volatility, crypto payment acceptance has increased. Visa is cooperating with other crypto businesses to help mainstream the digital asset market.
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Visa, the pro-crypto worldwide payment corporation, announced in a recent earnings call that customers of its network transacted over $2.5 billion in value using their crypto-linked cards.
This amount is already more than 70% greater than the total number of transactions made with crypto cards in fiscal 2021 — a reflection of the degree of acceptance observed in the digital asset business this year.
According to Visa’s Chief Financial Officer, Vasant Prabhu, the business has observed a rise in crypto transaction volume despite the market’s volatility.
Earlier this year, significant digital currencies such as Bitcoin and Ethereum saw their prices plunge to new lows as the market saw a broad correction after the Federal Reserve’s announcement of its new aggressive attitude.
Prabhu stated, “This indicates that customers see the value of having a Visa card connected to a cryptocurrency platform account.” He also noted the convenience of financing and controlling transactions using the card during his interview with CNBC.
Cryptocurrency-linked cards are gaining traction in the market. These cards enable holders to spend crypto at any location that accepts Visa. Merchants receive transactions in fiat currency, similar to standard credit card transactions, with the processor doing the conversion.
Cryptocurrency transactions continue to grow in popularity.
As seen by the value of transactions, the use of Visa crypto-linked cards has been stable over time. Visa reported $1 billion in card transactions in the first six months of 2021. This was much higher than the figures observed in 2019.
With record expenditure in the first fiscal quarter of 2022, it is apparent that an increasing number of individuals now see crypto assets as a legitimate payment alternative.
“People are using their crypto-linked cards in a variety of ways,” the CFO stated. They are gradually being regarded as if they were a general-purpose checking account.”
Apart from the increasing transaction volume, Visa also disclosed a rise in the number of cryptocurrency businesses with whom it collaborates to enable the services. Previously, the company served around 54 businesses, but that number has recently expanded to over 65.
Notably, Visa is not exclusively involved in the facilitation of cryptocurrency payments. The firm’s tendrils have stretched to other crypto areas, including consulting and the booming NFT market.
Despite these pro-crypto initiatives, it has no intentions to store any cryptocurrency on its balance sheet at the moment.
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