The world’s leading payment companies, Mastercard and Visa, have taken steps to accelerate support for cryptocurrency payment processors by opening up new options to users worldwide. Both companies made strong statements on the use of cryptocurrencies in July, announcing their respective projects and collaborations that are driving the adoption of cryptocurrencies.
The positive attitude of the world’s largest traditional payment processors to cryptocurrency exchanges and payment platforms shows a change in the perception of the traditional financial area. Mastercard has actively encouraged exchange and payment service providers to sign up for its recently expanded cryptocurrency card programand become partners in their Accelerate program in just a few weeks. Meanwhile, Visa outlined his vision of the cryptocurrency space with a general theme of market positivity and the role he will play.
The payment service provider found that digital currencies are an interesting way to expand the existing network of networks to support the latest technology that drives global trade. These two global giants not only offer lip service, but their payment cards and technology are already driving a number of platforms and service providers in the crypto space. Cryptocurrency exchanges like Coinbase and Binance use Visa or Mastercard to operate their cryptocurrency debit card services.
The relationship between Visa and Mastercard to cryptocurrencies is growing
Visa’s public confirmation of its positive stance on cryptocurrency payment services reflects its desire to remain a leader in the global payments network. As highlighted in his “Perspective on New Payments in Digital Currencies”The company admits that a growing group of traditional financial players have been trying to connect to the crypto space: “It is a concept that is gaining strength beyond fintechs. “
The company had already started working with some of the leading cryptocurrency companies in 2020, including Coinbase and Fold. This is in addition to the more than 25 cryptocurrency wallets connected to Visa systems. Visa also has its fintech accelerator program called FastTrack, which allows technology companies like cryptocurrency companies and blockchain to access their systems and network.
The company has also developed its own crypto projects, including an investment in the technology company Anchorage, which is building a security infrastructure for the crypto ecosystem. His research team has also been working in the blockchain area for several years and has created the white papers for the Zether and FlyClient projects.
Visa has also been involved in the design of rules and guidelines for cryptocurrencies around the world. He worked with the World Economic Forum to develop recommendations for central banks to investigate the use cases of CBDCs. Cointelegraph contacted Visa for more information, but the company declined to provide more information than stated on its blog.
Mastercard has actively encouraged cryptocurrency exchanges and payment service providers to sign up for the Accelerate platform to speed up the process of becoming a partner.by including new providers of debit and credit cards for cryptocurrencies and additional support for market entry and expansion in different countries. However, potential employees must meet Mastercard’s strict requirements. This includes a high level of consumer protection and compliance with the AML / KYC standards.
This collaboration with the cryptocurrency industry follows the news that Wirex was the first cryptocurrency platform to receive Mastercard primary membership status. Part of the functionality allows users to instantly convert cryptocurrencies to traditional fiat currencies. An added benefit is a rewards program that allows users to make 1.5% of purchases made in Bitcoin using these cards.
Bridge the division
Binance recently confirmed that a limited number of its Binance cards are being shipped to Europe. This measure gives the Visa and Mastercard statements a real substance as users access these card services through some of the key players in the cryptocurrency exchange space.
According to Josh Goodbody, director of growth and institutional business for Europe and Latin America at Binance, traditional bank cards are a “bridge between cryptocurrencies and traditional finance” and add:Crypto debit cards provide a tangible and smooth way to spend your cryptocurrencies and give users the ability to integrate cryptocurrencies into their everyday lives.“”
Goodbody declined to go directly with Visa, but said that the acquisition of the Swipe Binance crypto payment platform would provide access to an established network of regional service providers that the company wants to attract new cryptocurrency users. Goodbody believes that large financial companies will play a key role in this:
“The willingness of Visa and other networks to work with the blockchain industry is a very positive vote of confidence for the future introduction of cryptocurrencies. Traditional technology providers not only facilitate the introduction, but actively participate in the development of the ecosystem. We see this as Opportunity to promote the adoption and accessibility of cryptocurrencies. “
Cryptanalyst Mati Greenspan congratulated Mastercard and Visa in the Quantum Economics newsletter at the end of July and said: “When it comes to fundamentals, this is as bullish as it can be for Bitcoin and the band.“”
Netanel Kabala, chief analyst and co-founder of the Simplex payment platform, told Cointelegraph that his company has been working with Visa and Mastercard for seven years. The relationship has allowed the company to open cryptocurrency offerings to new users looking for alternative investment methods: “Cryptocurrency adoption is increasing worldwide as people look for alternative investment opportunitiesKabala has set a time frame for entering new crypto users, but the integration of large financial institutions like Mastercard and Visa is a strong signal:
“From an analytical perspective, we see a lot of new users in the crypto world. With every new technology or advancement, it often takes some time for the general public to incorporate them into their traditional affairs. Although we definitely believed it. Traditional funding would have been introduced earlier, it seems like it’s starting now. “
Nimrod Lehavi, CEO of Simplex, believes that the potential benefits of cryptocurrencies are perceived more sensitively, especially by those who want to regain control of their assets and ability to process independently: “Anything that reduces friction and helps people take full control of their wealth will spread acceptance, and debit and credit cards related to cryptocurrencies are a key component in this regard.“”
Leading companies in the financial industry, such as Mastercard and Visa, which support crypto and blockchain companies and work actively with them, increase the value and benefits of these services. Lehavi believes this will open the door to more users who have not been exposed to digital assets: “Key actor support eliminates much of the uncertainty that people might have about cryptocurrencies and enables them to discover digital assets for what they are“”