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According to Visa’s CFO: Cryptocurrency craze may be waning.

According to Visa's CFO: Cryptocurrency craze may be waning

Crypto-related Visa transactions significantly boosted the company’s cross-border volume this spring, albeit the benefit is starting to fade.

Crypto Market’s Growth

The crypto markets have witnessed extraordinary growth this year, with lucrative spillover consequences for third parties like Visa. According to the company’s senior executives, though, this may already be dwindling.

The payments behemoth’s recently disclosed financial data for fiscal Q3 2021 indicate encouraging numbers for cross-border and international transactions. This is a crucial indicator for investors looking for early signs of epidemic recovery.

Visa’s Cautionary Advice

Earlier this month, Visa’s crypto-enabled cards handled more than $1 billion in total spending in the first quarter of 2021. Therefore indicating an influence on international volume as crypto users deposited cash onto crypto platforms in multiple countries. 

However, Visa chief financial officer Vasant Prabhu noted in a new interview that much of the crypto-driven impetus behind increased cross-border spending was restricted to the first two months of the quarter.

Prabhu stated that after a surge in crypto purchases in April and May, it had begun to decline by June. Given the shaky comeback to international travel, Prabhu cautioned that cross-border trade might be on the slide if the crypto market does not pick up.

Visa Profited off the success

The overall picture for the last quarter reveals that Visa’s international transaction processing brought considerable income. This is much more profitable for the company than intra-national spending. Although most of the world was under severe lockdowns last year, the firm recorded a 34% rise in payments. In addition, the business announced net revenues of $6.1 billion for Q3 2021. This is a 27% gain above the $5.86 billion average of expert forecasts.

Visa x Currencycloud

According to the article, Visa has signed a formal agreement to buy Currencycloud. Currencycloud is a cross-border payments platform that services about 500 financial and technology clients in over 180 countries. Currencycloud and Ripple, the startup behind XRP, announced a collaboration to collaboratively investigate novel cross-border transaction methods.

Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Crypto is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Crypto market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.