Visa is planning to add cryptocurrencies to its payment networks. CEO Alfred Kelly says the company’s strategy is to work with wallets and exchanges to allow Cryptocurrency purchases and cashouts.
The company will also allow its users to make fiat purchases using cryptocurrencies using its 70 million global merchant network.
“Our strategy here is to work with wallets and exchanges to enable users to purchase these currencies using their Visa credentials or to cash out onto our Visa credential to make a fiat purchase at any of the 70 million merchants where Visa is accepted globally,” said the CEO during the company’s Q1 earnings call.
Kelly described cryptocurrencies as digital gold, which are not used as a form of payment in a significant way.
The inclusion of cryptocurrency in its payment network is part of the company’s network strategy. CEO identified fiat-backed digital currencies like stable coins and central bank digital currencies as an emerging innovation, with potential for global commerce.
“We think of digital currencies running on public blockchains as additional networks just like RTP or ACH networks, so we see them as part of our network of networks strategy.”
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Visa Q1 Results
Q1 2021 Net revenues fell by 6% year-on-year to $5.7 billion. Its earnings per share were $1.42 against an expected EPS of $1.28.
Payments volume grew 5% year-on-year to $2.4 trillion, with debit volume increasing by 17%. Credit fell by 6% while cross border volume fell by 21%. Total cards were up by 4% to 3.5 billion, with credit cards growing by 1% and debit cards growing by 5%.
