This year has seen unprecedented growth in the crypto markets, with lucrative knock-on effects for third parties like Visa. This, however, may already be beginning to dwindle, according to the company’s senior executives. Visa’s newly released financial results for fiscal Q3 2021 show bullish figures for cross-border and overseas transactions — a key metric for analysts on the lookout for early signals of pandemic recovery.
Visa crypto cards had processed more than $1 billion in total spending for H1 2021.
Visa revealed that its crypto-enabled cards had processed more than $1 billion in total spending for H1 2021, registering an impact on overseas volume as crypto users deposited funds into crypto platforms across various fields. These effects are still visible in the company’s latest results for Q3, with the report indicating that “Cross-border volume excluding transactions within Europe, which drive our international transaction revenues, increased 53% on a constant-dollar basis for the three months ended June 30, 2021. Total cross-border volume on a constant-dollar basis increased 47% in the quarter.”
Visa CFO says crypto frenzy is cooling down.
In a recent review with Bloomberg, Visa chief financial officer Vasant Prabhu said that much of the crypto-driven momentum behind higher cross-border spending was in fact limited to the first two months of the quarter. Highlighting the spike in crypto purchases in April and May, Visa executive noted that it had begun to fall back by June. Given the faltering return to international travel, Visa’s chief financial officer warned that the cross-border volume could be poised to decline without being buoyed up by a booming crypto market. Visa has also reported net revenues of $6.1 billion for Q3 2021, an increase of 27%.