Visa CFO Believes That Crypto Fever is Starting to Cool off
Vasant Prabhu – Chief Financial Officer of the company – opined that crypto-related transactions using Visa are beginning to dwindle. The top executive informed that their peak was in April and May, followed by a drop starting from June.
Cryptocurrency Transactions with Visa Are Calming Down
The American multinational financial services corporation – Visa Inc. – recently announced its results for fiscal Q3 2021. According to the report, the company’s last three months were profitable, driven by the fact that many leading countries started reviving their shattered economies which were affected by the COVID pandemic:
“Visa delivered another strong quarter as many key economies are well into a reopening-driven recovery. Visa grew net revenues 27% and non-GAAP EPS 41% while continuing to make investments in strategies that will drive future growth.”
However, the company’s CFO revealed that crypto-related transactions using Visa, which were booming in the first two months of the quarter, started declining in June. The executive believes that the trend may offset broader cross-border growth on the firm’s cards.
The overseas spendings reportedly spiked by 47% in Visa’s fiscal third quarter. Removing travel transactions from the equation, online cross-border financial operations increased by 56%, which is 12% more than the second quarter. It is worth noting that much of the earnings came from cryptocurrency purchases.
Visa’s New Cryptocurrency Services
The payment technology giant, which recently announced that more than $1 billion was spent on crypto-linked Visa cards, has demonstrated its sympathy towards digital assets numerous times. For example, back in April, the firm showed interest in fully integrating a cryptocurrency payment system into its current infrastructure. Visa executives even opined that they see Bitcoin and other virtual currencies as “digital gold.”
A few weeks ago, the firm approved the issuance of a physical debit card to allow Australian users to spend their bitcoins at local stores and leisure venues. The inovation would enable customers to make direct purchases with cryptocurrencies instead of converting them into fiat money first.
CryptoSpend – the Australian app that will create the card – assured that the innovation would be available on the market from September this year. Richard Voice – co-founder of the company – commented:
“We have customers that range from 18-year-old students to 70-year-old grandmothers. [This] further emphasizes the growing appetite for people of all ages to use crypto as an everyday currency.”