Visa V has started a cryptocurrency advisory service, seeking to capitalize on the explosive growth in the cryptocurrency market.
The company said the San Francisco-based payment giant’s move “comes at a time when cryptocurrencies are increasingly dominating the public consciousness.”
The new service targets banks and retailers.
A study by Visa indicates that nearly 40% of cryptocurrency owners may be switching their primary bank to one that offers crypto-related products, MarketWatch reports.
“We have seen a fundamental shift in the mindset of our customers in the past year, from wanting to explore and experiment with cryptocurrencies, to building a strategy and product roadmap,” Claudio de Nella, Visa’s Head of Advisory and Analytics in Europe said in a statement.
Visa already has a Bitcoin rewards credit card and enables customers to use USD Coin for payments.
Certainly Visa’s chief financial officer, Vasant Prabhu, says that the sharp volatility of cryptocurrencies could prevent people from using them.
“If the price [of bitcoin] “It’s going to swing from $60,000 to $50,000 in a few hours, it’s very difficult for a trader to accept as currency,” he told Reuters.
Bitcoin dropped from its November 30 high of $59,042 to its December 3 low of $42,875.
Visa stock was recently trading at $207.55, and it hasn’t changed much.
Morningstar analyst Brett Horn puts the fair value of Visa at $217.
“Despite the continuous development of the payments industry, we believe that there is a wide moat for business and that Visa’s position in the global electronic payment infrastructure is fundamentally irreplaceable,” he wrote on October 29.