This year Bitcoin price has surged to over $20,000 and this rise is attributed to increasing institutional investment and public buy-in from Square and PayPal. Also, another company that has warmed up to cryptocurrencies is Visa Inc. (NYSE:V).
Visa partnering to issue crypto credit cards
The entry of Visa into the crypto space might have gone unnoticed because most of its efforts have been through partnership. On the other hand, PayPal has solo initiatives including plans to add BTC and other cryptos to Venmo and PayPal in 2021. Square also has forayed into the sector alone after adding BTC to the Cash App two years ago the company recently purchased $50 million worth of BTC reflecting on its balance sheet.
However, Visa’s steps seem to hold a much bigger potential in the path towards mainstream adoption. This year there have been some announcements of BTC-related debit/credit cards and Visa is at the center of it. US crypto exchange, Coinbase recently announced that it will issue Visa debit cards allowing users to spend cryptocurrencies from their Coinbase wallets and earn rewards. Also, Binance is issuing a zero-fee Visa debit card offering cashback rewards depending on one’s Binance token (BNB) balance.
Also bitcoin rewards app, Fold is offering a Visa debit card giving BTC rewards instead of cashback or airline miles. BlockFi is also offering a Visa credit card giving 1.5% cashback in BTC. There several other such cards expected to come going forward and Coinabse already has launched the cards in Europe and the UK.
Visa working with 25 crypto companies
Interestingly not all Visa-BTC cards are issued through direct partnerships with the company as some are issued through partners with approval from Visa. Visa is actively working with more than 25 crypto companies on various BTC related products and services besides issuance of cards. The company emphasizes enhanced due diligence in the issuance of crypto credit/debit cards. Although Visa has not directly entered into the crypto industry its initiatives will way a long way in mainstream adoption of cryptocurrencies.