Visa, a global payment giant, is taking another step forward in its journey towards cryptocurrency adoption. The company has joined forces with Web3 infrastructure provider Transak to introduce a new method for exchanging cryptocurrencies for fiat currencies without relying on centralized exchanges.
The collaboration leverages the power of Visa Direct, allowing users to withdraw cryptocurrencies such as Bitcoin directly from a wallet like MetaMask to a Visa debit card. This solution enables real-time card withdrawals, making it quick and easy for users to convert their crypto balances into fiat currencies. One of the key benefits of this integration is that it offers access to more than 130 million merchant locations worldwide where Visa is accepted.
Visa’s collaboration with Transak significantly expands the options available for converting cryptocurrencies into fiat currencies. This development marks a milestone in bridging the gap between the crypto and traditional finance worlds. Through this partnership, users from 145 countries can directly convert 40 cryptocurrencies to fiat without relying on centralized exchanges. Supported countries include Cyprus, Malta, Singapore, Turkey, Portugal, and the United Arab Emirates.
Visa Direct’s program enables third-party providers like Transak to connect to Visa’s network, facilitating direct payments onto Visa cards. With this integration, users can now process transactions in less than 30 minutes, allowing for nearly real-time conversion of cryptocurrencies into fiat. The Visa Direct platform supports over 40 major cryptocurrencies, including Bitcoin, Ethereum, Solana, and Dogecoin, and is accessible in more than 145 countries.
Yanilsa Gonzalez-Ore, the North America Head of Visa Direct and Global Ecosystem Readiness, praised the collaboration between Visa and Transak. He highlighted that it gives crypto users the convenience to spend their cryptocurrencies at over 130 million visa-powered merchant locations in real time. He also emphasized that Transak’s integration with Visa Direct delivers a faster, simpler, and more connected experience for its users.
Transak, known for its payment and onboarding services, plays a vital role in advancing cryptocurrency adoption. The platform enables users to buy and sell crypto assets, manage necessary know-your-customer (KYC) requirements, monitor risk, and comply with clients such as MetaMask and Coinbase Wallet. Last year, Transak raised $20 million in a Series A funding round for global expansion, and its integration with Visa Direct is a significant step towards mainstream cryptocurrency adoption.
Harshit Gangwar, Transak’s marketing head and investor relations lead, sees the collaboration as a major move towards mainstream acceptance and utilization of cryptocurrencies. He highlights the accessibility and convenience brought about by the integration, as it makes it easier for users of decentralized platforms and wallets like MetaMask, Ledger, and Trust Wallet to directly convert their digital assets to a Visa card. Transak’s involvement ensures the necessary licenses, verification processes, and compliance with Know-Your-Customer and Anti-Money Laundering measures, enabling users to legally facilitate such transactions.
Lorenzo Santos, MetaMask’s senior product manager, acknowledges the significance of the collaboration with Visa. He states that it opens new horizons for MetaMask users, providing greater flexibility in cryptocurrency-to-fiat conversions. With this integration, MetaMask users gain the ability to off-ramp directly from their wallets to a Visa card, enhancing the usability and practicality of their digital assets.
The partnership between Visa and Transak comes at a time of significant growth in crypto ownership. According to crypto.com, global crypto usage increased by 34% in 2023, with the number of cryptocurrency holders or users rising from 432 million to around 580 million worldwide. Bitcoin and Ethereum are cited as major contributors to the increase in crypto users globally.
Visa’s collaboration with Transak represents a significant development in the world of cryptocurrency adoption. The integration of Visa Direct allows for quick and easy conversion of cryptocurrencies into fiat currencies, empowering users and bridging the gap between traditional finance and the crypto ecosystem. With the accessibility and convenience provided by this partnership, it is clear that the path towards mainstream cryptocurrency utilization is becoming more attainable.