Credit card usage for cryptocurrency reaches $2.5 billion


Visa provided an earnings update on Thursday, reporting that its customers used its crypto-linked cards to make $2.5 billion in payments during the first fiscal quarter of 2022. This represents more than 70% of the crypto-card volume in fiscal 2021, an indication of the growing number of people buying digital assets with their cards.
Although the cryptocurrency
markets are volatile, cryptocurrency is becoming a more popular payment method.
CNBC spoke with Visa CFO
Vasant Prabhu about the positive development, “To us, this signals that
consumers see the utility in having a Visa card linked to an account at a crypto platform."
He adds, "People are
using their crypto-linked cards to spend in a variety of ways—retail goods and
services, restaurants, travel."
With crypto-linked credit
cards, consumers can purchase crypto anywhere Visa is accepted. That means
merchants do not have to be familiar with crypto at all; transactions are processed
in fiat as are typical Visa transactions.
Visa also announced that
its crypto wallet partner list now includes Coinbase, Circle, and BlockFi, as
well as almost 100 million merchants accepting crypto payments.
The usage of cryptocurrency-linked
cards reached $1 billion in the first half of 2021, according to Visa.
Mastercard and cryptocurrency exchange Gemini plans to introduce a card to
offer the opportunity to earn cryptocurrency. In early 2022, Gemini, the crypto
exchange co-founded by Cameron and Tyler Winklevoss, will make the card
available for customers on a waitlist.
With a strong focus on
expanding the crypto industry and its adoption in general, Visa launched
crypto-consulting services in December for its clients in order to encourage
financial institutions to participate in cryptocurrencies.
Recently, Visa partnered
with a musician named Micash Johnson to educate musicians about how to monetize
their work and advance their careers using NFTs.

Pavan A
CBW - External Analyst
INDIA