Image: © danielskyphoto/Stock.adobe.com
Visa now plans to ‘lean into the crypto space’ and be a ‘key partner’ for companies.
Visa plans to continue pushing into the cryptocurrency space after customers made $2.5bn in payments with its crypto-linked cards in its most recent quarter.
Speaking on an earnings call for the first fiscal quarter of 2022, ending 31 December 2021, Visa CEO Alfred F Kelly Jr said the figure was 70pc of the company’s crypto payments volume for its entire 2021 fiscal year.
Kelly added that its settlement and crypto API capabilities have been Visa’s “key differentiators” compared to other financial institutions and fintechs looking into crypto options for their customers. He said there are more than 65 crypto platforms and exchanges that have partnered with the company, including Coinbase and BlockFi.
“We will continue to lean into the crypto space,” Kelly added. “Our strategy is to be a key partner to provide the connectivity, scale, consumer value propositions, reliability and security that is needed for crypto offerings to grow.”
While companies such as Visa and Mastercard are pushing further into the cryptocurrency payment space, countries around the world have been taking note of potential impacts.
Earlier this month, Russia’s central bank proposed a ban on the use and mining of cryptocurrencies in the country as it has the potential to cause bubbles in the market. The move mirrors China’s crackdown on crypto last year, when its government shut down bitcoin mining farms and ordered financial services firms to cease crypto activities.
Kosovo’s government also recently banned crypto mining to curb electricity consumption as it deals with a severe energy crisis.
Strong results
Visa saw net revenue of $7.1bn for its first fiscal quarter of 2022, an increase of 24pc on the previous year. The company reported net income of $4bn and earnings per share of $1.83, a 27pc and 29pc increase respectively.
Total payments volume increased by 20pc, while total cross-border volume saw a 40pc increase. Kelly said the company delivered “strong results”, with the growth in e-commerce, a return to cross-border travel and global recovery being contributing factors.
“As we look ahead, we do not believe the current surge in the pandemic will curtail the recovery,” Kelly said. “We see economies around the world continuing to improve and, as restrictions are lifted, cross-border travel will continue to recover. We remain confident that we are well positioned, via our multi-pronged growth strategy, to deliver strong results well into the future.”
Visa confirmed that it recently completed its acquisition of Currencycloud, a global platform that enables banks and fintech companies to provide foreign exchange services for cross-border payments.
According to MarketWatch, the company’s shares surged on Friday (28 January) following the earnings report.
Don’t miss out on the knowledge you need to succeed. Sign up for the Daily Brief, Silicon Republic’s digest of need-to-know sci-tech news.
