Visa recently announced that global consumers spent more than $1 billion using cryptocurrency-linked cards during the first half of the year. This significant milestone highlights the growing adoption of digital currencies in everyday transactions.
According to the report, this figure represents a major increase compared to the same period in previous years. Although exact numbers for prior years were not disclosed, Visa confirmed that crypto-related expenditure in 2020 and 2019 was only a fraction of this year’s total.
Growing Consumer Interest in Crypto Payments
Vasant Prabhu, Chief Financial Officer of Visa, emphasized the company’s commitment to building an ecosystem where cryptocurrencies can be used as practical forms of payment. He noted that more users are exploring ways to utilize digital assets for routine purchases—similar to traditional currencies.
Despite the volatility often associated with cryptocurrencies, Prabhu pointed out that consumers are becoming more proactive in managing their digital holdings. This trend aligns with a broader shift toward innovative payment technologies.
A recent study by Mastercard revealed that 93% of North American consumers are planning to use cryptocurrencies or other emerging payment methods—such as biometrics, QR codes, or contactless systems—within the next year. The same study indicated that 75% of millennials would be more likely to use cryptocurrencies if they had a better understanding of how they work.
Expansion of Crypto Card Programs
Several major platforms have partnered with Visa to offer cryptocurrency card services. Circle, BlockFi, and Coinbase are among the key players enabling users to spend digital currencies at over 70 million merchants worldwide.
In a parallel development, Mastercard is collaborating with Gemini—a crypto exchange founded by Cameron and Tyler Winklevoss—to launch a new card that will reward users with cryptocurrency. However, cardholders won’t be able to access their digital wallets directly through the card’s interface.
Visa also recently welcomed FTX, a cryptocurrency platform founded by Sam Bankman-Fried, into its Fintech Fast Track program. This initiative is designed to promote the adoption of digital assets for both consumer and business spending.
The Future of Crypto Payments
Visa estimates that cryptocurrency-linked cards and other emerging payment technologies—including biometric authentication and QR code systems—have the potential to transform the global cash and check economy, which is valued at approximately $18 trillion annually.
Despite Bitcoin’s milestone achievement of reaching a $1 trillion market capitalization in February and hitting an all-time high near $65,000 per coin in April, the market has experienced considerable volatility. Since its peak, Bitcoin’s value has declined by nearly 45%, briefly falling below $29,000 last month.
When asked whether Visa plans to add cryptocurrencies to its corporate treasury—following the example of companies like Tesla and MicroStrategy—Prabhu stated that the company currently has no such intentions. He explained that Visa maintains balances only in currencies required for operational purposes, such as dollars, euros, or pounds, and does not plan to hold cryptocurrencies as part of its treasury management strategy.
Frequently Asked Questions
What is a cryptocurrency card?
A cryptocurrency card allows users to spend their digital assets at merchants that accept traditional card payments. These cards automatically convert crypto into fiat currency at the point of sale, making it easy to use digital currencies everyday transactions.
How does Visa benefit from cryptocurrency transactions?
Visa earns transaction fees from purchases made using crypto-linked cards, similar to traditional payment processing. Additionally, supporting crypto payments helps Visa stay competitive in the evolving financial technology landscape.
Are cryptocurrency transactions secure?
Yes, transactions made with crypto cards are processed through secure payment networks like Visa’s own system. However, users should still follow best practices for protecting their digital wallets and private keys.
Can I earn rewards with crypto cards?
Many crypto card programs offer rewards in the form of digital assets, cashback, or other incentives. For example, some cards allow you to 📈earn cryptocurrency rewards on everyday purchases.
What currencies are supported by crypto cards?
This varies by provider, but most crypto cards support major digital currencies like Bitcoin, Ethereum, and others. It’s best to check with the card issuer for specific details.
Is now a good time to start using crypto for payments?
With growing acceptance and improved infrastructure, using crypto for payments is more feasible than ever. For those interested in exploring this option, you can 🚀discover updated payment solutions tailored to digital asset users.