The multinational payment card service Visa is taking a step ahead in innovating the financial sector by allowing cryptocurrency withdrawals directly through it without having to rely on centralized exchanges. The company collaborated with Transak, a Web3 infrastructure provider, for crypto withdrawals and payments to be made with the Visa Direct option.
This is not the first time Visa has approached cryptocurrency. The company supports digital currency, enables Visa credentials for crypto users, and facilitates USDC to allow digital and financial currencies to be used together. Considering how Bitcoin and Ethereum have increased in usage over the last year, the strategy created by Visa now allows investors to get Bitcoin or Ethereum safely and exchange them for fiat without the involvement of a third party.
Let’s see how this feature developed and impacted the crypto market.
Visa’s New Integration Works Directly Through One’s Wallet
The new Visa option collaborated with Transak, which will rapidly deliver the conversion of crypto assets into fiat, allowing users to receive their money from most digital wallets, such as MetaMask. 130 million merchants are available for Visa payments that involve crypto exchanges to fiat money, so it will be handy for most users worldwide.
The partnership has developed so the feature can be used in 145 countries and with more than 40 cryptocurrencies that can be converted to fiat money. Cyprus, Singapore and Portugal are only a few examples of countries where this feature is available.
Visa also ensured that Transak holds licenses and tech features for KYC, and Anti-Money Laundering can secure the customer’s investments. Therefore, the platform can verify users and legally enable any type of transaction.
Visa Started Exploring Crypto Integrations In 2020
Visa is a revolutionary company for approaching and integrating different technologies into their systems. However, the interest started around 2020, when Visa collaborated with Circle, a blockchain services company, to link stablecoin transactions with credit card compatibility. Hence, companies that leverage Visa services would be able to improve cross-border USDC transactions.
Visa also worked with Coinbase for a new Visa debit card project, so users can buy products and services with their crypto-linked cards. Since then, many other cryptocurrency exchanges and platforms, such as Binance and BlockFi, have worked with Visa. This made it easier for crypto to be integrated into the real world while blending its features with traditional financial institutions.
Visa And Ethereum’s Association Would Help Crypto Develop
Besides facilitating cryptocurrency transactions, Visa also reached out to Ethereum for collaborations on the technical side. The partnership would allow automatic payments from people’s personal digital wallets, so third parties would no longer be involved.
Considering the famous FTX bankruptcy and many other schemes, users would be advantaged by such an upgrade because they won’t risk their crypto assets. However, they would secure their wallets and diversify investments to lower risks.
The proposal came after a few of Visa’s employees tried to find a solution for ether owners to
pay bills with crypto at a specific date in the future. Since settling pre-authorized payments in blockchain and networks is more complex, the collaboration can be considered groundbreaking.
Visa And Bitcoin To Launch Rewards On Unique Infrastructure
Besides the blockchain association with Ethereum, Visa also approached Bitcoin improvements, where apps that partner with Visa would provide users Bitcoin rewards instead of traditional points included in credit cards.
Considering how much Bitcoin expanded in the US, the feature would target existing local services to access Bitcoin rewards so they can approach a new customer target and grow their businesses. Despite the various challenges, Visa is committed to investing in the crypto sector.
Since Visa is seen as reliable worldwide, customers would trust using their reward points and return to certain companies offering them. This makes crypto easier to understand and approach.
Visa Supports Different Crypto Industries
Visa is also interested in helping creators who develop NFTs, so it launched the Visa Creator Program to help artists from multiple areas boost their small businesses with NFTs that will generate revenue. Creators will be selected, and the lucky ones will access a particular program covering information on technical and product mentorship, community building and exposure to different clients and partners.
Therefore, micro and small businesses created by people who share their arts, music, fashion innovations and even filmmaking content can grow in the industry and take advantage of NFT creation and additional communities.
The Visa program was launched in 2021 when NFTs were booming on the market. Since then, NFTs changed considerably, with creators improving their creations based on market changes and trends. Therefore, the program proposed by Visa is helpful to anyone who wants to be more financially stable as a small business creator.
Visa To Partner With Tech5 In The Future
Another collaboration will be added to Visa’s multiple partnerships. The upcoming strategic affiliation will be done with Tech5, a company handling biometrics and digital identity management through which a solid foundation for secure and seamless transactions will be constructed in the light of digital identity.
Tech5’s infrastructure has unique features, such as biometric SDKs and contactless biometric capture, that could help Visa develop and create training programs to increase financial literacy and forecast the regulation landscape.
Another upcoming collaboration will be with Itermex (International Money Express Inc.) to provide superior money transfer experiences through rapid swift transfers through eligible Visa cards. Visa Direct would be integrated into the company’s platforms to accelerate the movement of global transactions and offer better consumer services. Hence, Intermex would benefit from the collaboration, while the financial ecosystem could be improved.
Bottom Line
The financial giant Visa is making sustainable efforts to improve its services and contribute to a better future. Besides the multiple collaborations with Ethereum and blockchain companies, Visa has recently worked with Transak to offer the possibility to withdraw crypto from their wallets and exchange it for fiat money without the services of a third party. This is only one of Visa’s plans to improve the crypto sector, as its commitment has been shown to be sustainable.
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