Visa's strategic alliances with multiple crypto exchanges since 2021 have successfully generated over $3 billion in transactions.
Speaking during the Blockchain Economy Summit In Dubai, Akshay Chopra, Vice President, Head of Innovation & Design at Visa CEMEA, disclosed that Visa's joint efforts with cryptocurrency exchanges have resulted in over $3 billion in payment volumes since 2021.
The event spanned two days and brought together notable figures in the financial sector, including Amnah Ajmal from Mastercard EEMEA, Matthew Sigel of VanEck, and Lennix Lai of OKX Exchange, among other distinguished speakers.
Huge Payment Volume
Chopra revealed Visa's deliberate collaboration with the top 75 cryptocurrency exchanges in 2021 to introduce crypto cards, facilitating cryptocurrency use at over 80 million Visa-accepting merchants worldwide.
The payment giant aims to make crypto payments easier Visa aims to make cryptocurrency spending seamless for daily use. Though less than 5% of people globally have invested in crypto, the $3 billion transacted in 2021 reflects rising interest.
“Creating this pathway in 2021, and these figures haven’t been widely publicized, led to $3 billion of transactions,” Chopra stated. He mentioned that this opens doors for traditional finance to leverage the benefits of Web3.
According to a Visa executive, major traditional financial institutions face challenges like cross-border transaction inefficiencies, which Visa's partnership with Circle, the stablecoin USDC issuer, addresses.
In early September, Visa announced an expanded partnership with Circle to enhance stablecoin use for international payments, offering a faster, cost-effective alternative to conventional methods.
Chopra highlighted that while financial entities can leverage crypto payments and its foundational tech, hesitation persists due to regulatory uncertainties.
Countries like the United States are still grappling with crafting clear crypto regulations, hindering growth attempts.
Chopra cited the proactive regulatory model of countries like the United Arab Emirates, which have devised frameworks to foster innovation within the sector.
In April, Visa announced a stablecoin-centered project targeting the mass adoption of blockchain networks and stablecoin transactions, continuing its collaboration with Circle since 2020.
Growing Adoption
Visa is not the only entity recognizing crypto's potential; Mastercard is also engaged through its partnerships with crypto entities like Nexo, Gemini, and TAP in its Crypto Card Program.
Mastercard and Nexo have developed the pioneering dual-mode crypto card, allowing both debit and credit functionalities.
Many payment and tech organizations are gradually embracing crypto-centric services and blockchain innovations, expanding their offerings despite regulatory scrutiny.
PayPal has become increasingly prominent in this sector, launching its stablecoin PayPal USD (PYUSD) in August, now available on key exchanges like Huobi and Kraken.
In September, PayPal introduced off-ramp services for Web 3 payments, and it reportedly applied for an NFT marketplace patent, gaining attention this week.
Stripe, PayPal's major competitor, has launched fiat-to-crypto payment solutions and is exploring further integration of cryptocurrency.
The increasing adoption of cryptocurrency is now being acknowledged by major payment processors as they plan to roll out more options soon.
