The head of Visa payment company Alfred Kelly announced one of his strategic goals. It is to expand the range of possibilities in the application of new technologies and methods of money transfer.
Visa plans active work with Bitcoin and altcoins, as well as with secured fiat currency (stable coins and tokens).
Visa's 2 crypto plans for the near future
- to make first cryptocurrency purchases available through payment system accounts.
- to set up work with Bitcoin wallets.
Possibility to transfer coins into fiat and operations with them in 70 millions points in the world, where Visa card is valid.
Visa's top management sees the potential in cryptocurrencies as a means of payment mainly in emerging economies. The CEO of Visa estimates that cryptocurrencies may become actively involved by 2025/2026. Nevertheless, the forecasts note the risks of a decline in such interest in cryptocurrencies in some years.
Visa currently works with 35 players in the field of digital currencies.
Visa presented its dealing strategy with digital currencies during a conference call with investors back in early 2021. The company plans to create partnership agreements with exchanges and wallet operators.
It is possible that Visa will include cryptocurrencies in its list of payment options to bypass fiat conversion.
On the eve of 2021, Visa announced its global network connection to the USDC.
For the company February 2021 was a month when they tested a set of application programming interfaces (APIs) that will allow customers of traditional banks to operate (buy/sell) with digital assets.
Future plans include issuing a card for direct payments for goods/services using stablecoins
Visa is also preparing to issue a credit card with a cash back option (1.5% /per transaction) for Bitcoin purchases (as an alternative to traditional currencies or miles). Such a card will in fact be made of metal. The waitlist for the card has been open to applicants since the fall of 2020. The clients would pay $200 per year to maintain such a card.
About competitors' cryptocurrencies
Mastercard (a direct competitor of Visa) is already working in this direction. By the end of 2021, the company plans to open up access for merchants to accept direct crypto payments, dropping support for cryptocurrency card issuers/processors.
Mastercard is focusing on the operation of stablecoins and national cryptocurrencies.
The company is skeptical of Bitcoin as an asset for payment transactions.
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Another payment giant PayPal is also interested in working with digital currencies. According to the head of the company Dan Schulman, customers of the payment system in 2021 will be able to operate with digital coins to pay any of the 29 million merchants.