The world’s leading payment companies Mastercard and Visa have taken steps to accelerate support for cryptocurrency payment processors by opening new options for users worldwide. Both companies made strong statements supporting the use of cryptocurrencies in July announcing their respective projects and collaborations that are driving the adoption of cryptocurrencies.
The positive attitude towards cryptocurrency exchanges and payment platforms of the world’s largest traditional payment processors indicates a change in the perception of the traditional financial space. Mastercard has been actively encouraging exchanges and payment service providers to sign up for its recently expanded cryptocurrency card program, becoming partners in just a few weeks as part of their Accelerate program. In the meantime, Visa outline his vision of the cryptocurrency space with a general theme of market positivity and the role it will play.
The payment service provider noted 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 are not only offering lip service, but their payment cards and technology are already driving a series of platforms and service providers within the crypto space. Cryptocurrency exchanges like Coinbase and Binance use Visa or Mastercard to power their cryptocurrency debit card services.
Visa and Mastercard’s relationship with cryptocurrencies is growing
Visa’s public affirmation of its positive stance towards cryptocurrency payment services reflects its drive to remain a leading player in the global payment network. How I know stands out in his “perspective on the new digital currency payment flows”, the company admits that a growing group of players in the traditional financial sphere has been trying to connect to the crypto space: “It is a concept that is gaining strength beyond fintechs. “
The company has already established a working relationship with some of the top cryptocurrency-based companies in 2020, including Coinbase and Fold. This is in addition to the more than 25 cryptocurrency wallets that are connected to Visa systems. Visa also has its fintech-focused accelerator program called FastTrack, which allows technology firms including cryptocurrency-based companies and Blockchain to access their systems and network.
The company has also been developing its own cryptocurrency projects that include an investment in tech company Anchorage, which builds a security infrastructure for the crypto ecosystem. His research team has also been working in the Blockchain space for several years, culminating in the creation of the White Papers for the Zether and FlyClient projects.
Additionally, Visa has been involved in helping shape cryptocurrency regulations and policies around the world. He has worked with the World Economic Forum to develop recommendations for central banks studying the use cases of CBDCs. Cointelegraph contacted Visa for more information, but the company declined to provide more information than what appears on its blog.
Mastercard has been encouraging actively to cryptocurrency exchanges and payment service providers to sign up for their Accelerate platform, in an effort to speed up the process to become partners, through the incorporation of new cryptocurrency debit and credit card providers, while providing additional assistance for market entry and expansion in different countries. However, potential associates must meet the strict requirements established by Mastercard. These include high levels of consumer protection and compliance with AML / KYC standards.
This collaborative move with the cryptocurrency industry comes on the heels of the news that Wirex became the first cryptocurrency platform to be granted Mastercard primary membership status. Part of the functionality allows users the ability to instantly convert cryptocurrencies into conventional fiat currency. An added benefit is a rewards program that gives users 1.5% of purchases made with these cards in Bitcoin.
Bridge the division
Binance recently confirmed that a limited series of their Binance Cards are being shipped to Europe. This move adds real substance to Visa and Mastercard statements, as users are beginning to access these card services through some of the major 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,” adding: “Crypto debit cards provide a tangible and frictionless way to spend your cryptocurrencies, and provide users with the ability to incorporate cryptocurrencies into their everyday lives.“
Goodbody declined to elaborate on the direct working relationship with Visa, but stated that the acquisition of the crypto payment platform Swipe would allow Binance to access an established network of regional service providers in which the company hopes to attract new users to the cryptocurrency space. Goodbody believes that major 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 adoption of cryptocurrencies. Traditional technology providers not only facilitate adoption, but actively participate in the development of the ecosystem; We see this as an opportunity to foster the adoption and accessibility of cryptocurrencies. “
Cryptanalyst Mati Greenspan also congratulated Mastercard and Visa in the Quantum Economics newsletter in late July, saying: “When it comes to fundamentals, this is as bullish as it can be for Bitcoin and the band.“
Netanel Kabala, the chief analyst and co-founder of the Simplex payment platform, told Cointelegraph that his company has been working alongside Visa and Mastercard for seven years. The relationship has allowed the company to open cryptocurrency offerings to new users exploring alternative investment methods: “Cryptocurrency adoption is growing globally as people search for alternative investment avenuesKabala identified a time frame for new users to enter crypto, but the integration of major financial institutions like Mastercard and Visa is a strong signal:
“From an analytical point of view, we are seeing many new users enter the crypto world. With each new technology or advancement, it often takes some time before the general public incorporates it into their traditional affairs. Although we definitely believed that this Adoption of traditional finance would have come earlier, it seems like it’s starting now. “
Simplex CEO Nimrod Lehavi believes there is a more receptive perception to the potential benefits of cryptocurrencies, primarily driven by people who want to regain control of their assets and the ability to independently transact: “Anything that reduces friction and helps people gain full control of their assets will spread adoption, and debit and credit cards connected to cryptocurrencies are a key component in that regard.“
Leaders in the financial industry like Mastercard and Visa who vocally support and actively work with cryptocurrency and blockchain companies add more credibility to the value and utility of these services. Lehavi believes this will open the door for more users who have not been exposed to digital assets: “Support from major players removes much of the uncertainty that people might have regarding cryptocurrencies and will allow them to discover digital assets for what they are“