On Friday, VISA announced that it would be starting a long-term collaboration with FTX Trading Ltd. and West Realm Shires Services Inc. to work on crypto debit cards. Partnering with FTX.com and FTX US crypto exchanges, VISA will provide crypto-related debit card services in more than 40 countries.
The goal of the partnership is for FTX to offer name-brand debit cards, powered by VISA, to international customers. During the first stages of the rollout, the company is looking to focus on countries in Asia, Europe, and Latin America.
Initial Focus on Latin America and Europe
Just like traditional debit cards are linked to a bank account, these will be linked to holders’ FTX accounts. Although they are only available in the US as of now, these cards are being launched in 40 other countries, many of which are in Latin America. After this, the company will focus on rolling out services for Europe before the end of 2022. As for the next year, it has plenty of regional ventures and launches planned.
Paying For Goods and Services with Cryptocurrency
The VISA-powered crypto debit cards make it easy for holders to purchase goods and services using the crypto balance in their digital wallets. For scale, that means being able to pay at 80 million merchant locations around the world. FTX also stated that users won’t have to pay any processing or administrative fees when they use the card.
In a press release, the CEO of FTX stated that the company was thrilled to partner with the payment network, giving users the ability to spend their crypto at different retailers. Through a card payment, users don’t have to deal with the hassle of using a crypto ATM to withdraw fiat currency. Not to mention, the availability of such ATMs isn’t as widespread, which creates the need to convert crypto to fiat currency and withdraw it from the bank. Compared to such long-winding options, crypto debit cards are a much faster solution.
Integrating Digital Currencies into the Global Financial Ecosystem
At VISA, Cuy Sheffield, the Head of Crypto is positive that cryptocurrencies will play a significant role in the movement of money. Meanwhile, the global head of payments at FTX, Adam Jacobs explained that the partnership with VISA expands the connection between the financial ecosystem and digital currencies.
Vasant Prabhu, CFO of VISA, elaborated that despite the dip in values, interest in crypto remains steady. He further explained that the payments network doesn’t hold a stance on what value cryptocurrencies should hold or how they can be sustainable in the long run. As long as there are crypto users who want to be able to make purchases, VISA will look for ways to make it happen.