Visa introduced crypto withdrawals on Debit Cards across 145 Nations, a move hailed by many as the catalyst needed for mainstream cryptocurrency adoption.
Visa, a major player in global payments, is reinforcing its commitment to wider adoption of cryptocurrencies after it announced the introduction of a new avenue for exchanging digital currencies for fiat without relying on centralized exchanges.
In collaboration with Transak, a Web3 infrastructure provider, Visa aims to facilitate cryptocurrency withdrawals and payments using the Visa Direct solution, as disclosed by the companies on January 30.
Transak is a developer integration for a fiat-to-crypto payment gateway, addressing a significant challenge in providing accessibility to cryptocurrencies and blockchain for mainstream individuals and businesses.
The platform achieves this by incorporating local compliance measures, various payment methods, and global liquidity into its services.
The new integration will allow users to withdraw cryptocurrencies directly from a wallet like MetaMask to a Visa debit card without transferring it to a centralized exchange.
The readily available integration would enable users to exchange crypto for fiat, which they can utilize to pay over 130 million merchant locations where Visa cards are accepted.
This is a huge step towards mainstream crypto adoption because not only does it simplify the steps for you to make payments using cryptocurrencies, but it would also provide you with another reason to think about investing in cryptocurrencies as the financial gains made in the crypto world can now be redeemed very quickly.
However, as mentioned in our other articles, we urge our users to exercise extreme caution when investing in cryptocurrencies and do their due diligence first.
Moving back to Visa’s recent announcement, the head of Visa Direct’s North American division, Gonzalez-Ore, shared his enthusiasm regarding the recent announcement.
In his statement, Gonzalez-Ore stated: “By enabling real-time card withdrawals through Visa Direct, Transak is delivering a faster, simpler, and more connected experience for its users — making it easier to convert crypto balances into fiat.”
Transak’s marketing head and investors relations lead, Harshit Gangwar, also expressed his excitement regarding the company’s new venture with Visa.
He said that the collaboration with Visa has increased the number of options to convert crypto into fiat currencies by a huge amount, and this is another milestone achieved by the two companies to bridge the gap between crypto and the traditional financial world.
“This marks a significant stride toward widespread acceptance and use of cryptocurrencies,” stated Gangwar, emphasizing the increased accessibility and convenience resulting from the integration.
Gangwar also highlighted the substantial advantages for users of decentralized platforms and wallets such as MetaMask, Ledger, and Trust Wallet. He pointed out that MetaMask users can now smoothly convert their digital assets to fiat currency directly from their wallet to a Visa card, enhancing their digital holdings’ overall usability and practicality.
The newly achieved characteristics regarding the ease of conversion were also hailed by MetaMask’s senior project manager, Lorenzo Santos. In a statement to the press, he said that the collaboration between Visa and Transak has certainly introduced a newer significant feature for MetaMask users.
Santos said: “Transak’s integration with Visa opens new horizons for MetaMask users globally, providing more flexibility in smooth cryptocurrency to fiat conversions.”
As per Gangwar from Transak, the platform plays a crucial role in the integration due to its possession of licenses in various jurisdictions.
He emphasized that Transak ensures the implementation of Know-Your-Customer (KYC) and Anti-Money Laundering (AML) guidelines, which is essential if they want to avoid catching the attention of financial regulators.
These capabilities allow Transak to verify users’ identities and legally facilitate transactions of this nature, providing a secure framework for such financial activities.
The newly established partnership between Visa and Transak would allow users from 145 countries to convert at least 40 cryptocurrencies to fiat directly without visiting any centralized exchange first.
Transak’s global coverage page states that some supported countries encompass jurisdictions like Cyprus, Malta, Singapore, Turkey, Portugal, and the United Arab Emirates.
Visa has been actively involved in various initiatives to encourage the wider adoption of cryptocurrencies. The company began its foray into cryptocurrency by showing interest and forming partnerships with cryptocurrency-related companies.
One notable early collaboration was with Coinbase, a major cryptocurrency exchange. In November 2015, Visa became a principal member of the Coinbase-led initiative to launch the Coinbase Card. This cryptocurrency debit card allowed users to spend their crypto holdings wherever Visa was accepted.
This marked an early instance of Visa’s engagement with the cryptocurrency ecosystem. Here’s a timeline of other key events highlighting the company’s effort toward widescale crypto adoption.
- October 2020: Partnered with Fold, a rewards app allowing users to earn bitcoin on everyday purchases, marking one of the first major collaborations between a traditional financial institution and a crypto company. The collaboration was further extended in March of 2023.
- December 2020: Announced a partnership with Circle, the issuer of the USDC stablecoin, to settle payments using USDC, signifying a crucial step in mainstreaming stablecoin usage for payments. In September 2023, Visa rolled out support for USDC payments settled on the Solana blockchain.
- March 2021: Visa rolled out a pilot program to settle transactions with the digital stablecoin USD Coin (USDC) on the Ethereum blockchain. In collaboration with partners Crypto.com and Anchorage, Visa aimed to bridge traditional fiat currencies with digital assets, settling some obligations through the Crypto.com Visa card program.
- September 2021: Visa partnered with crypto lending firm BlockFi, where they collaborated to launch the BlockFi Rewards Visa Signature Credit Card for U.S. residents in all states except New York, where regulatory restrictions apply. Evolve Bank & Trust issued the card, and Deserve served as a technology and program management partner.
- October 2022: Visa launched a pilot program with cryptocurrency exchange FTX that would allow FTX users to spend their crypto holdings at selected merchants, further simplifying everyday crypto usage. However, after the FTX implosion, Visa terminated its partnership with the now-defunct cryptocurrency exchange.
- December 2022: Visa pledged to invest $1 billion by 2027 to expand its African presence amid the growth of its digital payments. The commitment, announced by Visa, aimed to deepen collaboration with partners and enhance financial inclusion in a region where over 500 million people were underbanked. Notably, Africa’s digital acceleration presented opportunities for secure and convenient digital payments, including the vast potential in crypto payments.
These events highlighted Visa’s commitment to participate in the evolution of digital currencies actively. Through various initiatives, the company demonstrated its dedication to fostering broader adoption and incorporating cryptocurrencies into the conventional financial system.
