Visa says crypto-linked card usage hit $2.5 billion in its first quarter
Coinbase created its own debit card to encourage the use of cryptocurrency in both investing and payments.
VisaDuring its earnings conference, it was revealed that its customers paid $2.5 billion with crypto-linked cards during the fiscal first quarter 2022.
This represented 70% of all crypto volumes for the entire fiscal 2021.
This signals to us that customers see the utility of having a Visa Card linked with an account on a cryptocurrency platform. It’s valuable to be able to access liquidity to finance purchases, manage expenses and do it instantly and seamlessly,” Vasant Prabhu, Visa CFO, told CNBC during a telephone interview. better-than-expected earnings and revenueAfter the bell on Thursday.
Al Kelly, Visa CEO, said that “we will continue to leverage the crypto space” and added, “Our strategy is to remain a key player to provide connectivity, scale and consumer value proposition as well as reliability and security necessary for crypto offerings and to continue growing.” The stock rose in after-hours trade, and the shares opened sharply higher on Friday.
Also, the company revealed that it has increased its number of cryptocurrency wallet partners from 54 to 65. These include Coinbase Circle BlockFi and Circle. Nearly 100 million merchants now accept crypto payments.
The broad category of spend doesn’t show that there are any specific merchants who have these programs. People are using their crypto-linked cards to spend in a variety of ways — retail goods and services, restaurants, travel. Prabhu said that they are increasingly treated as a general-purpose account.
Back in July, Visa reported crypto-linked card usage reached $1 billion for the first six months of 2021.
MastercardGemini and a cryptocurrency exchange plan to create a credit card that will allow customers to receive crypto as a reward. However, cardholders won’t be able to access their digital wallet directly. Gemini is the cryptocurrency exchange that was co-founded billionaires Tyler Winklevoss & Cameron Winklevoss. expectsFollowing previous plans for the launch in summer 2018, the card will now be available to those on a waiting list.
The second half of 2017 saw major cryptocurrency booms slow down. BitcoinThe indices, which reached an all-time peak of almost $69,000 in November 2017, have dropped by more than 45%.
Prabhu explained, “We’ve witnessed this payment volume keep growing despite volatility in cryptocurrency markets.” “Crypto reward are a significant portion of the value proposition of many card programs, particularly for those who are not investing directly in crypto, but who want the chance to earn it when they spend fiat,” Prabhu added. [currency like the dollar]. To see how these programs impact the entire rewards category, we are closely monitoring them.”
Visa doesn’t intend to keep cryptocurrency on its balance-sheet, but it was created. crypto consulting serviceAs it works to promote the use of digital currencies, it has recently made investments in several crypto platforms.