Visa To Accept Payment Settlements Using Cryptocurrency

Image source: Visa

Visa Inc announced Monday that it will allow the use of cryptocurrency to settle transactions on its payment network. 

The financial services giant said that transactions can be settled using USD coin (USDC), an Ethereum-based stablecoin backed by the US dollar. Visa has launched a pilot program with crypto platform Crypto.com and Anchorage Digital Bank, the first federally chartered digital asset bank.

Visa said it plans to offer the USDC option to more partners later this year. 

Under the pilot program, the need to convert digital coin into traditional currency is eliminated when an individual pays for something using a Crypto.com Visa card. 

Previously, a cardholder’s cryptocurrency wallet would deposit fiat currency into a bank account, which would be wired to Visa at the end of the day, adding cost and complexity to the process.

Jack Forestell, Visa’s executive vice president and chief product officer, called Monday’s announcement “a major milestone” in the company’s “ability to address the needs of fintechs managing their business in a stablecoin or cryptocurrency.”

“Crypto-native fintechs want partners who understand their business and the complexities of digital currency form factors,” Forestell said.

The new pilot is “really an extension of what we do every day, securely facilitating payments in all different currencies all across the world,” he also said.

Kris Marszalek, co-founder and chief executive officer of Crypto.com, said, “We’ve seen record-breaking growth in our business and the broader crypto ecosystem over the last year. To continue accelerating the world’s transition to cryptocurrency, we need partners who understand the opportunity and the tools that will help us get to market faster and more efficiently.”

“Having been a Visa partner for several years, we’re excited to deepen that relationship through our global agreement and to pioneer an exciting world-first in stablecoin payments,” Marszalek added.

Earlier this month, Visa partnered with Anchorage and completed the first transaction using Crypto.com to send USDC to Visa’s Ethereum address at the bank.

Visa’s move is the latest sign of growing acceptance of digital currencies by the mainstream financial industry and comes as other large firms, like Mastercard Inc (NYSE: MA), Bank of New York Mellon Corp and BlackRock Inc, have also started accepting digital coins. 

It also follows Tesla Inc chief executive officer Elon Musk’s announcement last week that customers can now buy his company’s electric cars with bitcoin.

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Source: Equities News