Visa is introducing new consultancy and advisory services to assist its customers in navigating the world of cryptocurrency.
The payments processor announced on Wednesday that its crypto advisory practice, housed within its consulting and analytics division, will provide guidance to financial institutions, retailers, and other businesses on topics ranging from implementing crypto features to exploring non-fungible tokens.
Visa has recognized UMB, an American bank, as a client that is already utilising its crypto advising services.
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The move is Visa’s latest attempt to expand its presence in the cryptocurrency market. According to Nikola Plecas, Visa’s European crypto head, the business handled $3.5 billion in digital currency transactions through its crypto-linked card schemes between Oct. 1, 2020, and Sept. 30, 2021.
“Some of these big exchanges have millions or, in some cases, tens of millions of users,” Plecas told CNBC, adding that the firm allows customers to spend their cryptocurrency at more than 80 million merchants.
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The business is also working on solutions for stablecoins, which are virtual tokens pegged to the value of sovereign currencies, generally the dollar, and central bank-issued digital currencies.
Visa expects that its crypto consulting will aid in the mainstreaming of bitcoin and other digital currencies. The credit card company, like competitor Mastercard, views cryptocurrency as a crucial growth prospect as it goes beyond card payments.
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In recent years, major payment networks have experienced greater competition from a slew of new financial upstarts. Emerging developments such as open banking, which intends to provide competing fintech access to customer bank information and payment capabilities, threaten to destabilise their business model.
Meanwhile, huge internet businesses are putting pressure on Visa. Amazon said last month that it will no longer accept Visa credit cards in the United Kingdom owing to the company’s “high fees.” In Australia and Singapore, the e-commerce titan has taken similar action against Visa.
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“Crypto is a major new vertical and growth potential for us. And we will continue to focus on increasing this industry in the future,” Plecas added.
According to a Visa study published on Wednesday, 94% are already aware of cryptocurrency, and nearly one-third have used it as an investment or medium of trade. The study, performed in collaboration with marketing services firm LRW, polled over 6,000 people worldwide.