Shares of Visa (V.N) hit fresh record highs above the $240 mark this week after the major global payment-processing company announced its consumers have spent more than $1 billion worth of cryptocurrency globally using their crypto-linked cards. 💳
This is a big deal compared to 2019 when the payments giant didn’t even release the exact numbers. Visa’s Chief Financial Officer Prabhu explained that people are not afraid to find ways to use crypto instead of regular currency.
“We are doing a lot to create an ecosystem that makes cryptocurrency more usable and more like any other currency,” he told CNBC.
He added that volatility issues exist, but it’s up to the cryptocurrency owners to work out. Prabhu also said that Visa doesn’t plan to add new currencies to its balance sheet.
“We hold currencies that we get paid in, or we pay people in,” Prabhu added. In addition to the $1 billion milestone, Visa also announced it entered into a partnership with over 50 companies to further accelerate and expand the adoption of its crypto card program.
Tailwinds and new revenue streams from the emerging cryptocurrency ecosystem are providing another boost for Visa and its robust business model. Bitcoin (BTC) price reached a $1 trillion market cap in February but has plunged 45% since then. Plus, a new study by Mastercard shows 93% of North American consumers plan to include cryptocurrency or similar payment technology in the next year.
Hence, it comes as no surprise that Visa’s share price is soaring at the moment. Shares of the payment-processing company are up nearly 10% year-to-end (YTD), at a new fresh all-time high of $241.04. 📈
On a side note, Visa’s biggest rival, Mastercard (MA.N), is also launching a crypto card, possibly making the company's stock similarly attractive to investors in the near future.
For all traders on NAGA, we're happy to remind you about our partnership with UK-based payment solutions provider Contis to launch NAGA Pay – a payment solution that combines an IBAN account, a VISA debit card, a share deposit, copy trading, and physical crypto wallets.
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