Visa company V recently unveiled the Global Crypto Advisory Practice in an effort to help clients and partners make financial decisions related to crypto products. The new offering is part of the payments consulting arm of V – Visa Consulting & Analytics (“VCA”), which includes many seasoned consultants and data scientists.
Thus, the newly launched service appears to be of great help to financial institutions interested in launching crypto products or central banks trying to venture into digital currencies. At the same time, the latest move is aimed at strengthening Visa’s cryptographic solutions and capabilities, which in turn may contribute to its higher growth.
Initiatives like the latest Visa initiative seem timely, too. With cash and checks taking a back seat, flexible payment options such as cryptocurrency are coming to the fore. There was a time when this digital currency was not widely accepted but recently there has been a noticeable change in the perception of investors regarding crypto products.
The same fact is further demonstrated by a global study, where Visa reports that about a third of respondents have used crypto in either of the two ways – an investment product or an exchange medium. According to the same study, over the course of a year, nearly 40% of cryptocurrency owners surveyed around the world were interested in switching their primary banks to a bank that provides crypto products.
The growing popularity of crypto products is evident, and the increased use of digital transactions is expected to accelerate market growth. As a form of digital currency, crypto facilitates smooth and cost-effective currency exchanges.
Despite being exposed to many temporary signs and constant fluctuations in the market, crypto products hold promising growth prospects on the back of the increasing penetration of the Internet and the availability of advanced technologies such as blockchain. According to Fortune Business Insights, the global cryptocurrency market is expected to experience a compound annual growth rate of 11.1% over the period 2021-2028.
Visa appears to be well positioned to take advantage of the prevailing scenario given that Zacks, the world’s 3rd (Hold) leader in digital payments, works closely with more than 60 crypto platforms. Through several collaborations with crypto companies, V integrates crypto and blockchain networks into its global payment network.
Having a trusted payment method like Visa, which has more than 25 cryptocurrency wallets linked to its systems, encourages increased use of crypto and digital currencies.
Similar to Visa, there are other companies including MasterCard Incorporated MA, PayPal Holdings, Inc. PYPL and Square, Inc. SQ has taken several initiatives to capitalize on the growing popularity of cryptocurrencies.
Mastercard is partnering with cryptocurrency platforms to take advantage of the growing number of consumers entering the crypto space. MA’s relentless endeavors to offer a seamless digital currency wallet and exchange experience result in more consumers turning towards crypto cards to purchase digital assets or incur spending. In July 2021, Mastercard teamed up with a series of crypto companies in an effort to unveil a card offering and offer seamless cryptocurrency conversion.
PayPal allows customers to trade crypto assets through its digital wallet. PYPL has an offering in a place called Checkout with Crypto, which aims to facilitate seamless online purchases using cryptocurrencies. In August of this year, PayPal unveiled its cryptocurrency service in the UK, marking its entry into the country’s cryptocurrency market.
Square has made significant investments in buying bitcoin (a crypto asset) over time. SQ’s entry into the bitcoin market with its Cash App product continues to contribute well to the company’s quarterly results. In the third quarter of 2021, the Cash App generated $1.8 billion in bitcoin revenue and $42 million in total bitcoin revenue. The numbers improved by 11% and 29% over the year, respectively, mainly due to the rise in the price of Bitcoin.
Visa shares are up 0.5% in the year versus an industry decline of 19.8%. you can see The full list of Zacks #1 stocks (strong buy) today is here.
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While MasterCard stock gained 3.3% in the year. PayPal and Square shares lost 9.4% and 13.4%, respectively, in the same time frame.
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