Visa is the latest legacy finance player to embrace crypto - The Hustle
The Hustle

Visa is the latest legacy finance player to embrace crypto

Visa has partnered with Crypto.com on a pilot program to settle payments on the Ethereum blockchain.

In October 2018, Visa Inc. CEO Aflred Kelly told CNBC’s Jim Cramer that cryptocurrencies are not a big threat but “if we have to go there, we will go there.”

At the time, Visa was a $300B+ company and the combined market cap of all cryptocurrencies was $200B+. Today, things are looking different:

Well, earlier this week… Visa went there. Per Reuters, the payments giant will roll out a pilot program with crypto platform Crypto.com.

How it works

Crypto.com already offers its users a Visa card. However, any payments used by the cryptocurrency card have to be converted to fiat, which adds costs and complexities for merchants.

Here’s the new process:

This should reduce the friction in using crypto for payments

Ethereum has its own fee — called gas costs — to operate on the blockchain.

According to Protocol, a single transaction could rack up a fee of $10 to $20. Visa’s solution: to bundle payments as it does on its existing network to reduce costs and increase speed.

Such an improved process will go a long way to mainstreaming crypto for everyday payments.

The cryptocurrency momentum is undeniable

As Bitcoin continues to rise, other big finance names are jumping aboard the crypto train. Among the moves:

JPMorgan Chase, BNY Mellon, BlackRock, and Mastercard are all making their own moves in tandem.

It’s safe to expect more finance players to “go there” in the very near future.

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