Financial service provider giant Visa has now begun settling transactions in USD Coin (USDC), a cryptocurrency whose value is pegged to the US dollar, after piloting the capability with crypto and payment platform Crypto.com over the blockchain Ethereum. Visa plans to roll out the capability to additional crypto partners later this year. Previously, crypto wallets and platforms working with Visa needed to convert payments to fiat currency before transactions could be settled by the card network, adding time and costs to the process.
Payment providers embrace crypto.
Payment providers are stepping up their crypto game as digital currencies heat up in the consumer market. Visa first hinted at plans to add cryptocurrencies to its network in January 2021. The following month, financial service provider giant Mastercard announced a similar move after finding that more customers were buying crypto assets with cards. Mastercard is Visa’s biggest rival, so both networks are competing head-to-head for dominance in the nascent space. Later last year, American Express also invested an undisclosed amount into cryptocurrency trading platform FalconX, hinting at entering the crypto space.
PayPal and Square also continue to strengthen their presence in the crypto space.
Financial service provider giants like PayPal and Square also made crypto strides over the last year, which could put pressure on networks to keep up. Square, which introduced Bitcoin trading for Cash App users in 2018, bought $170 million worth of bitcoin last quarter, potentially indicating plans to expand further into the crypto space. Consumer interests in cryptocurrencies have also surged during the ongoing global pandemic. Square, which launched bitcoin trading for Cash App users in 2018, bought $170 million worth of bitcoin last quarter. As reported earlier today, PayPal confirmed rumors of allowing US consumers to pay in bitcoin at several global merchants.