Payments technology firm Visa’s latest earnings report shows that spending for crypto assets through its cards has surged in the first fiscal quarter of the year, with over $2.5 billion spent in transactions between October to December of 2021.
“People are using crypto-linked cards to spend in a variety of ways – retail goods and services, restaurants, travel. They’re increasingly being treated like a general-purpose account. Crypto rewards are a significant part of the value proposition for many of these card programs, particularly for consumers who are new to crypto who may not be directly investing in it, but are excited for the opportunity to earn it as they spend fiat.” shares Visa’s chief financial officer, (CFO) Vasant Prabhu.
According to Prabhu, the above quoted figure accounts for 70% of Visa’s usage volume, all of which are crypto-related transactions. The record number reflects how Visa’s strategies for the crypto space has paid off, with its expansion of crypto wallet partners going from 54 to 65, a list that includes leading exchanges such as Coinbase, FTX, Blockfi, Crypto.com, and Binance.
“To us, this signals that consumers see utility in having a Visa card linked to an account at a crypto platform. There’s value in being able to access that liquidity, to fund purchases, and manage expenses, and to do so instantly and seamlessly.” Prabhu explained.
According to Visa, there are broader categories that are interspersed with the transactions that make up the total crypto spending. Since the crypto boom and the rise of regulated exchanges, payment technology firms like Visa have worked to integrate their cards and link their services to crypto wallets.
“We will continue to lean into the crypto space. And our strategy is to be a key partner to provide the connectivity, scale, consumer value propositions, reliability, and security that is needed for crypto offerings to grow.” the Visa executive stated.
Visa itself does not hold digital assets or crypto on its balance sheet. It did, however, launch a crypto advisory arm, in a bid to push for mass adoption. This strategy was based on Visa’s consumer research, titled The Crypto Phenomenon, in which the firm claimed that roughly 94% of adults worldwide already have awareness of crypto.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Source: https://cryptodaily.co.uk/2022/02/visa-earnings-report-highlights-surge-in-crypto-asset-purchases