Visa is announcing a partnership with over 50 cryptocurrency companies including FTX and Coinbase to allow clients to spend and convert digital currencies through its card program.
This will make it easy for clients to spend digital currencies at more than 70 million merchants worldwide, even if they do not accept digital assets originally.
“The merchants don’t have to change anything,” Cuy Sheffield, Visa’s head of cryptocurrency, told Market Insider. “It will be the same as any other Visa transaction to them. But on the backend, the crypto assets are instantly converted into fiat.”
He further explained how there are a number of crypto platforms that are growing and then there are also millions of merchants that do not really understand crypto. These merchants do not have to update their PoS and terminal devices to figure out blockchain.
There are a wide variety of features offered, although that also depends upon the cryptocurrency platform. Some of these features include letting users spend fiat and earn cryptocurrencies as a reward, similar to how users can accrue cashback, airline miles, or hotel points.
Sheffield added that people spent more than $1 Billion in crypto-linked Visa cards in the first half of 2021, which is the reason why he is so optimistic about the partnerships.
“We should be able to support a digital fiat currency and convert between the digital version and the traditional version of a fiat currency,” he said.