Visa (V) announced that cryptocurrency-linked card usage hit $2.5 billion in its first fiscal quarter of 2022. The payments company has made a significant push to support widespread digital currency adoption.
- Visa announced in its recent earnings call that its crypto-linked card usage hit $2.5 billion in volume in the first fiscal quarter of 2022.
- Visa handles payments for several crypto-linked debit and credit cards.
- The payment processing company doesn't hold cryptocurrency on its balance sheet but invests in digital currencies in other ways.
Visa Shows That Crypto Adoption Is Increasing Despite Recent Volatility
Visa's announcement that its crypto-linked card usage hit $2.5 billion in its most recent quarter is significant. That figure is 70% of the company's crypto volume for the entire fiscal year 2021, which means that the adoption of crypto-backed cards is increasing significantly.
Visa has provided a platform for crypto-linked debit cards for some time, but it's also the processing company for new credit cards like the BlockFi Rewards Credit Card.
Visa CFO Vasant Prabhu noted in an interview with CNBC that card users are treating their crypto-linked cards as general-purpose accounts, using them to make everyday purchases. "To us, this signals that consumers see utility in having a Visa card linked to an account at a crypto platform. There’s value in being able to access that liquidity, to fund purchases and manage expenses, and to do so instantly and seamlessly,” he added.
Prabhu noted that this increase in volume has occurred during a time of volatility in the crypto market.
The accelerated adoption in recent months is a testament to Visa's intentional investments in digital currencies. While the company doesn't maintain any cryptocurrencies on its balance sheet, it has created a crypto consulting service and invested in crypto platforms. The company has recently added Coinbase, BlockFi and Circle to its network of crypto wallet partners, increasing the total number of partners from 54 to more than 65.