Visa says its crypto-linked card payments hit $2.5 billion in Q1

Visa says its crypto-linked card payments hit $2.5 billion in Q1

By Benson Toti - min read
  • Visa processed $2.5 billion in crypto payments in the three months ended 31 December

  • 65 platforms and exchanges have teamed up with Visa, including Coinbase and BlockFi

  • CEO Al Kelly said the payments giant “will continue to lean into the crypto space.”

Visa customers used their crypto-linked card to make payments totaling $2.5 billion during the global payments firm’s fiscal first quarter of 2022 ended 31 December.

The company processed transactions worth $46.7 billion during the quarter, an increase of 21% on the volume reported in the same quarter a year ago.

The amounts pushed the electronic funds transfer behemoth’s crypto volume to 70% of what was recorded in the fiscal year 2021, CEO Al Kelly said in an earnings call.

According to the Visa chief, the massive jump in payments made via the company’s crypto-linked cards came as the number of platforms and exchanges signing up with them soared from 54 to 65.

Some of the big-name candidates on the network include crypto exchange Coinbase and BlockFi- a US-based crypto wealth management provider.

Merchants who accept Visa-linked crypto payments have also increased significantly, hitting 100 million during the quarter, the company said in its earnings statement.

Kelly noted that the credit card payments giant “will continue to lean into the crypto space,” as they look to help the sector grow. Part of Visa’s strategy for this, he explained, is to enhance partnerships that help ensure connectivity, reliability, and security, with an eye to scaling services and value proposition to customers.

Visa chief financial officer Vasant Prabhu said the growth in crypto-linked card payments is a signal that users see the utility in the offering, CNBC reported. 

He pointed out that customers are increasingly finding value through access to liquidity and instant, seamless purchases.

The Visa CFO also noted that volumes continued to rise despite the slump in crypto markets. He also added that the payments were spread across various merchant verticals, including at retailers, restaurants, and travel.

The company has no crypto holdings but has increasingly looked to support merchants and platforms. In December, it announced a crypto advisory service that targets helping institutions and merchants.

According to the company, this is due to the growing adoption of crypto across payments. The service also aims at helping customers seeking to explore the non-fungible tokens (NFTs) space and central bank digital currencies (CBDCs).