Visa Cryptocurrency Partners

Visa’s 54 Bitcoin-Linked Cards Pave The Way For Younger Generations To Spend Growing Crypto Wealth

Visa's 54 Bitcoin-Linked Cards Pave The Way For Younger Generations To Spend Growing Crypto Wealth
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Visa

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It is taking strong steps to connect digital currencies to the global electronic payments network in order to prepare for a financial future where digital assets comprise a significant amount of the saver’s wealth.

So far, 54 crypto companies have entered into with Visa to enable crypto spending. Much of this progress comes from issuing debit cards with the Visa FastTrack program, which aims to integrate fintech companies into the Visa network. Over the summer, the company launched two other products, a crypto rewards credit card in partnership with BlockFi and a debit card with major cryptocurrency exchange FTX, which just raised $900 million at a valuation of $18 billion.

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Other crypto-compatible card partners include CoinZoom, Coinbase, Zap, Crypto.com, Bitpanda, Fold, Upgrade, Wirex, and ZenGo.

“We have seen this opportunity with the growth of these crypto platforms, as consumers want access to the liquidity that they hold in these assets, and issuing a Visa card can become a bridge that unlocks that value and enables it to be spent at any merchant that accepts Visa,” said the head of Crypto at Visa. , Cuy Sheffield.

These projects are gaining traction — crypto-linked Visa debit cards have facilitated more than $1 billion in transactions across 70 million Visa merchants worldwide in the first half of 2021 alone. $1 billion is just a small part of the trillion-dollar payments industry, yet retail interest in cryptocurrencies is growing, indicating that the market has room for growth, especially with the younger generations. Sheffield says that no dominant spending category has emerged in crypto-related card use.

Survey data indicates that younger generations are increasingly transferring wealth to cryptocurrencies and digital assets. This is especially true for the more affluent members of these generations, which are especially valued by financial institutions and card networks.

The Michelmores survey of 501 “wealthy millennials” in the UK found that one in five invested in cryptocurrency and a CNBC survey of 750 investors conducted in April and May of 2021 indicated that nearly half of millennial millionaires owned 25 At least % of their money. Wealth in cryptocurrency. Millennials’ interest in cryptocurrency isn’t limited to the Western world – a modern MasterCard

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The survey found that millennials in the Middle East and Africa surveyed during February and March of 2021 are particularly interested in cryptocurrencies with 67% agreeing that they are more open to using digital currencies now than they were in 2020. Meanwhile, in Asia and India and China, each accounting for 33% of the $9.4 million of weekly peer-to-peer payments in the region. In both countries, millennials are led by tech-savvy merchants with aspirations for wealth.

The Covid-19 pandemic has only accelerated this trend by spurring saving ambitions and interest in cryptocurrencies at the same time.

Roughly 70% of Robinhood’s $80.9 billion of assets under custody came from users between the ages of 18 and 40. $11.5 billion of those assets in custody are cryptocurrency, according to the company’s S-1 filing, and for the three months ended March 31. In 2021, 17% of its total revenue is generated from transaction-based revenue earned from cryptocurrency transactions. This number has increased from 4% for the last three months of 2020. All of this data indicates a strong interest among retail traders between 18 and 40 in crypto assets.

With the boom of retail brokerage accounts, the cryptocurrency market was also reaching new heights, adding to the excitement among the younger generations. Bitcoin reached an all-time high of $64,654 on April 14, 2021, after the first anniversary of the start of the pandemic. The market collapsed a month later, reaching a July low of $1.2 trillion for all cryptocurrencies in circulation. Since then, the cryptocurrency economy has started to recover. The market crossed $2 trillion again on Wednesday, August 11, for the first time in nearly three months.

While investors are still mostly thinking about the long-term, the time will come when they need to generate liquidity from their holdings. Speaking about this effect, Sheffield argues that even if crypto owners intend to HODL (wait for dear life, crypto-collecting cry), the day will come when they want to spend the time.

When that happens, Lisa Ellis, partner and chief equity analyst at research firm MoffettNathanson, notes that they won’t want to go through the often arduous process of converting that crypto into fiat currency because of what Visa is doing.

“Brokers like Fidelity figured out a long time ago that they — and Merrill Lynch — figured they should issue a card for the balance in your brokerage account because that way you can keep your money in the brokerage account and you’re not,” Ellis said. The same. This basically just allows people to keep funds in a brokerage account and keep it in crypto. And then if they need it to spend well and people like to do it.”

It is unlikely that these developments will stop with cryptocurrency payments. In pursuit of creating opportunities for seamless crypto transactions, Visa is looking for new ways to attract crypto platforms looking to expand customer offerings. Among these upgrades is the ability of crypto companies to settle payments using the fast-growing dollar-pegged stable currency, USDC. As of writing, USDC’s market capitalization is $27.39 billion.

Typically when transactions are made with a cryptocurrency-linked debit card offered by a company like Crypto.com, that company converts the cryptocurrency into a legal order and then sends the money to Visa, which then sends the money to the merchant’s bank in the appropriate amount and in the correct currency. Through a partnership with the first federally chartered digital asset bank, Anchorage, Visa will now accept USDC, rather than fiat, from card providers such as Crypto.com.

“The goal is that if we can make it easier for crypto platforms to issue Visa cards and interact with Visa, we believe a lot — and we’re already seeing a lot of demand in crypto companies coming to us — we will have a path to create,” Sheffield said. The preferred network for cryptocurrency wallets so we want to meet them wherever they are.”

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