It Is Game Over When Visa Takes Crypto Seriously

5 mo
LeoFinance
5 Min Read
1045 words

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Visa is one of the well-known and trusted brands around the world and is among the top companies. Visa has been in payment processing business for a long time and is part of the traditional financial system. However, nobody can take away from Visa their innovation in financial space. They have build not digital money network long before bitcoin and alternative crypto networks became a reality. They provided a solution of fast and trusted transfers that provided convenience for daily transactions, while banks lacked enthusiasm to innovate and remained happy with their fractional reserve money making scheme.

I am not a huge fan of Visa, I do believe they belong to the old financial system. However, I do recognize and respect their accomplishments and success. What I respect the most about Visa is unlike many other entities involved in the financial systems, they have recognized the true potential of bitcoin, crypto, and this unstoppable movement. Visa has been showing interest in crypto space and evaluating their position and how it may change in the future if they don't start acting early on.

They have been studying crypto technologies and figuring out how they can pivot as crypto interest and adoption continues to grow. They have also created crypto advisory services and partnered with some crypto platforms.

Visa's latest move is the most interesting one. They have conducted survey to check the sentiment about cryptocurrencies among merchants. The results are just amazing. It's game over for fiat. lol.

When Visa conducted this survey among small businesses, a quarter of participants in survey expressed positive attitude to crypt and have plans to start accepting cryptocurrencies as payments. That is 25% of all surveyed, that they have decided they will integrate cryptocurrencies in the businesses. This number is huge. If it truly represents the larger group businesses, we can call it game over. Bitcoin and crypto won and things will just accelerate in favor of crypto.

However, it is always healthy to remain cautiously optimistic and be skeptical. Size of the group that participated in the survey matters as well, and may not necessarily represent all businesses and merchants. Looks like this survey was a part of a digital payments research, and have 2,250 small business participants with 100 employees or fewer from countries like the US, UAE, Russia, Singapore, Hong Kong, Ireland, Germany, Canada, and Brazil.

This demonstrates confidence regarding bitcoin and crypto is not only growing among people but also small businesses. It is responsible business for all small businesses who are actually planning to start accepting cryptocurrencies as payments. Now of course, Visa wouldn't just do this research out of academic curiosity. If they want to stay relevant in the future financial system, they will have to adapt.

I think this is a smart and responsible move by Visa to be worried about losing their market share in crypto payments. Yes, they are widely used brand. But history has shown time and time over that companies that do not keep up with technological innovation and popular demand may end up disappearing.

I am not sure what steps will Visa take to be part of crypto world. But it is clear that they definitely would like to be part of and don't want to be left behind. They are in a great position to become big players in crypto. So far it seems like they are doing all the right things, not neglecting crypto innovations, actively monitoring progress, researching the space and conducting meaningful surveys.

Now the question is can Visa continue making money by charging per transaction even if they adopt crypto and process crypto payments? I believe so. Why not? Transaction fees are everywhere in crypto. Bitcoin has transaction fees, Ethereum has transaction fees, many other blockchains have transaction fees. But also many crypto exchanges have fees. That's how they make money. Look at Coinbase. Their business model is to make money from trading fees. So, if Visa was involved in crypto and charged fees, I think they will do just fine. But then they also should be worried about blockchains like Hive that have zero transfer fees. I guess it depends on balancing the fees with convenience.

While Visa was also a technological innovation in how we use money, it also utilized methods of creating illusion and false confidence in the network, and false sense of security of transacting. For example, when we pay with a Visa credit or debit card at restaurants and stores, we may have to sign the receipts. This creates an illusion that somehow these signatures are important and somebody at some point checks if these signatures are legitimate. Well, nobody checks the signatures, they are completely useless.

At the same time, just because the customer gave their payment information doesn't mean that it is guaranteed that merchants end up keeping the money. There are chargebacks that banks can initiate on behalf of their customers for any and all transactions. Merchant may end up losing the payment amounts when chargebacks happen. These chargeback may even happen months after the transaction. Regardless of these chargebacks, it is still worth doing business for merchants, since they can still be profitable as long as most people in the network respect this honor system.

There are benefits adopting bitcoin and other crypto assets for Visa and merchants, because blockchain transactions are usually final and there is no such thing as charge backs. Customers can get real confidence and security as well, because blockchain transactions require them to sign transactions with their private keys and nobody else can spend money in their wallets.

This can make Visa network stronger and more secure. It all depends on what they are planning though, and how their role in crypto space will evolve. So far, it seems like they have taken right steps.

Truly decentralized networks like Bitcoin and Hive are open for everybody to participate regardless if they people, businesses, payment processors, NGOs, governments, and even central banks. Invitation is open to all. So, I welcome Visa's interest to become a participant in crypto space and benefit from it. What are your thoughts? Is this game over for fiat? Do you see Visa as part of the future financial systems?

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I cannot agree more.
Together with some partners in Italy we have deployed a protocol to implement cryptocurrencies into companies, to make them easy to get paid with.
That is, because if cryptos are received and not immediately converted to fiat currency, they are kept into wallet/exchanges and in case of a CEO exiting the company he can potentially steal those cryptos from the company's crypto accounts, and there is not possible refund with cryptocurrencies.

So I found the best crypto payment gateway + we created that protocol to make very safe for companies to accept them!

Btw, when VISA or equivalent, will come into direct acceptance of cryptos, I expect some order of magnitude of growth of businesses accepting cryptos as a payment.

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Visa has been showing interest in crypto space and evaluating their position and how it may change in the future if they don't start acting early on.

It is definitely not a bad idea if Visa is showing interest in the crypto world at least in that aspect is also a way to promote and enhance cryptocurrency with their support in another dimension.

2

Well you mentioned NGOs here and registered NPOs like The Papillon Foundation aka @papilloncharity can also benefit from crypto.
Should Visa decided to adopt crypto it can indeed become a game changer for everyone in the crypto world.

My only worry is will new NPOs constantly powerdown and deplete the rewards pool or would they hodl and build for the their future existence like we do at Papillon.

Let's hope that Visa will indeed come to the party.

!PIZZA

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PIZZA!

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0

So much incredible information and great Read Here . I don't Think you could be Anymore right . No matter how much people want to reject new ideas or ways, once the largest companies start implementing it , they have no choice. They might as well try it out sooner than later . Elders don't want smart phones , well there is usually 1 flip phone per carrier . 90% of pc or laptop don't even have a disk drive . There will be options to stay how they want , but it will become harder and harder to avoid converting to the new way

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It's great to see Visa getting involved in crypto.

I'll like to see other companies get involved too.
Especially those in africa.

Crypto is the future.

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That's a rather fascinating concept because Visa makes money as being the middleman. I wonder how that will pan out, considering the entire point of the crypto industry is to cut out the middle man.

The only way they could achieve it is to utilise something like Ripple Blockchain or Hive where transaction fee is low or non-existent, and transaction speed is fast. Bitcoin and Ethereum network are completely out of the question.

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My country ban Crypto so to know if this change will get to my side of the world is hard to imagine I don't see this changes reaching Nogeria 😞

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2

Even if VISA gets involved, I don't think fiat is going away until the price of goods are no longer in fiat. After all, if everything they buy needs to be converted from fiat into crypto and then they have to convert that crypto into fiat for the person on the other side.

I can definitely see VISA being a part of the future financial system and in a way, VISA is already an international way to pay for things anywhere. It would be hard to see a place that doesn't accept a VISA card but you may need to pay extra to pay in a different currency.

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2

This is a positive development for cryptocurrency's legality.

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Yet to understand their functionality is to be a middleman or own their trust wallet.
All I see is a different medium of payment with transaction fee.
Is not a game over for fiat but an alt for fiat. But institutions will still prioritize fiat over crypto because of Crypto high volatility.

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Merchant may end up losing the payment amounts when chargebacks happen

If they don't have the receipt signed by the customer.

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Optimism is hard to come by on the crypto community, but i find this kind of Cautious one to be incredible centered and logical, hope visa and other finantial entitys decide to leave the umbrella of Fiat and banks, and move foward with the new times.

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Good insights.

I think FIAT will be around for a long time still, but it's slowly been replaced.

I don't know if VISA will be a part of the future financial systems but I think they have a greater chance than the average company because at least they are doing their homework and trying to catch up with the trend.

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1

Visa is a established name. If it will enter the crypto space, it will surely make some noise. As for its influence towards mainstream adoption, that's good to see.

Thanks for the update!

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1
5 mo

This is a welcome development in the world of Cryptocurrency and, by extension, all projects that emphasise decentralisation.

Since they are in the phase of studying and making researches for financial gain and to stay relevant in the future, then I am hopeful that the favour will rest on the Crypto world.

The world is getting more digital and the sooner everyone becomes aware of this, the sooner they join the moving train and the sooner they benefit from it.

However, let's keep our fingers crossed and wait for the outcome.

If it turns out positive, we should expect many other financial institutions doing the same.

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0

If I'm a young man with little or no money. What is the path I should go to to make a lot of money with cryptocoins?

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Visa will get involved because they see where it is all going. However, they will ultimately run into what they are: gatekeepers. They extract payment for a service that will no longer be needed, establishing trust between buyer and merchant.

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2

I've never been a fan of Visa. However, the fact that they're considering this kind of upgrade is a welcome development.

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5 mo

I have a Visa card from crypto.com - so I believe they are somehow already involved.

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5 mo

I think both Visa and Mastercard have already started embracing crypto. But yes if they embrace it then nothing like it!

1

Wow 25% is really promising and will only continue to grow. More and more people I know are dipping their toes into the Crypto waters these days. The future is bright. The future is digital. The future is blockchain.

1

This is great news, glad to see they're open to innovation. I respect Visa a lot too, they have provided a transaction bridge that has been helpful for me personally and my career. There are some payment gateways I could have had big problems with if not for Visa, even where Mastercard fails.

I'm excited to see what the future holds for Visa and the crypto world generally

0
1

This is positive to legalize cryptocurrencies

0

Payment Service providers are also want to capture market share as that is a parallel industry which is working for all big deals for overseas clients and there monopoly is there of few of them.
Ultimately , If they capture few market share and they will be as strategical in limelight as well susain market.

0

One cannot underestimate the large steps the cryptocurrency world is making. The financial helms scattered all over the world are delving into crypto and for a fact Visa has been actively towing that step as well..

0

Great article @geekgirl,
This is something I've been thinking about for a few years, and I'm kind of shocked at this point to not see more mainstream integration for crypto use through the top banking intuitions.

I would propose this is for a plethora of reasons, but profit and centralization might be the biggest reasons it's taking so long.

Now the question is can Visa continue making money by charging per transaction even if they adopt crypto and process crypto payments? I believe so. Why not?

100% They can and they will. There's not a shadow of a doubt in my mind.

I see this ensuing war of sorts... Where the old school cryptonauts may hold large percentages of blockchain assets and will not agree to allow these financial institutions to be the "key holders" to their wallets.

Currently you can hold crypto on PayPal, but you don't hold the keys to that crypto wallet. I use PayPal, I do not use it for crypto, because I like to be the only one holding keys to my house.

Thank you for your thought provoking articles, you've been bringing us some great content these days my friend.

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