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Visa (V) Launches Service to Simplify Crypto-Related Decisions
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Visa Inc. (V - Free Report) recently unveiled Global Crypto Advisory Practice in a bid to assist clients and partners with financial decisions regarding crypto products. The new offering is part of V’s payments consulting arm — Visa Consulting & Analytics (“VCA”), which comprises several well-versed consultants and data scientists.
Consequently, the newly launched service seems to be of great help to financial institutions interested in launching crypto products or central banks attempting to venture into digital currencies. At the same time, the latest move intends to bolster Visa’s crypto solutions and capabilities, which in turn, might contribute to its top-line growth.
Initiatives similar to Visa’s latest one seem to be time opportune as well. With cash and checks taking a backseat, flexible payment options such as cryptocurrencies have come to the forefront. There was a time when this digital currency was not widely accepted but recently there has been a remarkable change in the perception of investors regarding crypto products.
The same fact has been further substantiated by a global study, wherein Visa stated around one-third of respondents have utilized crypto in either ways — investment product or medium of exchange. According to the same study, over the course of a year, roughly 40% of crypto owners surveyed worldwide were interested in diverting their primary banks to one that provides crypto products.
The growing popularity of crypto products is clearly evident and the increased usage of digital transactions is expected to accelerate growth of the market. As a form of digital currency, crypto facilitates seamless and cost-effective currency exchanges.
Despite being subjected to several temporary blips and persistent market volatility, crypto products hold promising growth prospects on the back of rising Internet penetration and availability of advanced technologies such as blockchain. Per Fortune Business Insights, the global cryptocurrency market is anticipated to witness a CAGR of 11.1% over the 2021-2028 period.
Visa seems well-poised to capitalize on the prevailing scenario since this Zacks Rank #3 (Hold) global leader in digital payments works closely with over 60 crypto platforms. Through several collaborations with cryptocurrency firms, V integrates crypto and blockchain networks within its global payment network.
The presence of a trusted payment facilitator like Visa, which has more than 25 digital currency wallets linked to its systems, further encourages increased usage of crypto and digital currencies.
Similar to Visa, other companies including Mastercard Incorporated (MA - Free Report) , PayPal Holdings, Inc. (PYPL - Free Report) and Square, Inc. (SQ - Free Report) resorted to numerous initiatives to capitalize on the increasing popularity of cryptocurrencies.
Mastercard has been collaborating with cryptocurrency platforms to tap the growing number of consumers entering the crypto space. MA pursues continuous endeavors to offer seamless cryptocurrency wallets and exchange experience, which result in more consumers shifting toward crypto cards for purchasing digital assets or incurring spending. In July 2021, Mastercard collaborated with a series of crypto companies in a bid to unveil a card offering and offer seamless cryptocurrency conversion.
PayPal enables customers to trade crypto assets through its digital wallet. PYPL has an offering in place named Checkout with Crypto, which is aimed at facilitating seamless online purchases utilizing cryptocurrencies. In August of this year, PayPal unveiled its cryptocurrency service in the U.K., thereby marking its foray into the country’s crypto market.
Square has made substantial investments in purchasing bitcoin (a crypto asset) over the passage of time. The entry of SQ into the bitcoin market with the Cash App product continues to contribute well to the company's quarterly results. In the third quarter of 2021, Cash App produced $1.8 billion of bitcoin revenues and $42 million of bitcoin gross profit. The figures improved 11% and 29% year over year, respectively, primarily due to the rise in bitcoin price.
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Visa (V) Launches Service to Simplify Crypto-Related Decisions
Visa Inc. (V - Free Report) recently unveiled Global Crypto Advisory Practice in a bid to assist clients and partners with financial decisions regarding crypto products. The new offering is part of V’s payments consulting arm — Visa Consulting & Analytics (“VCA”), which comprises several well-versed consultants and data scientists.
Consequently, the newly launched service seems to be of great help to financial institutions interested in launching crypto products or central banks attempting to venture into digital currencies. At the same time, the latest move intends to bolster Visa’s crypto solutions and capabilities, which in turn, might contribute to its top-line growth.
Initiatives similar to Visa’s latest one seem to be time opportune as well. With cash and checks taking a backseat, flexible payment options such as cryptocurrencies have come to the forefront. There was a time when this digital currency was not widely accepted but recently there has been a remarkable change in the perception of investors regarding crypto products.
The same fact has been further substantiated by a global study, wherein Visa stated around one-third of respondents have utilized crypto in either ways — investment product or medium of exchange. According to the same study, over the course of a year, roughly 40% of crypto owners surveyed worldwide were interested in diverting their primary banks to one that provides crypto products.
The growing popularity of crypto products is clearly evident and the increased usage of digital transactions is expected to accelerate growth of the market. As a form of digital currency, crypto facilitates seamless and cost-effective currency exchanges.
Despite being subjected to several temporary blips and persistent market volatility, crypto products hold promising growth prospects on the back of rising Internet penetration and availability of advanced technologies such as blockchain. Per Fortune Business Insights, the global cryptocurrency market is anticipated to witness a CAGR of 11.1% over the 2021-2028 period.
Visa seems well-poised to capitalize on the prevailing scenario since this Zacks Rank #3 (Hold) global leader in digital payments works closely with over 60 crypto platforms. Through several collaborations with cryptocurrency firms, V integrates crypto and blockchain networks within its global payment network.
The presence of a trusted payment facilitator like Visa, which has more than 25 digital currency wallets linked to its systems, further encourages increased usage of crypto and digital currencies.
Similar to Visa, other companies including Mastercard Incorporated (MA - Free Report) , PayPal Holdings, Inc. (PYPL - Free Report) and Square, Inc. (SQ - Free Report) resorted to numerous initiatives to capitalize on the increasing popularity of cryptocurrencies.
Mastercard has been collaborating with cryptocurrency platforms to tap the growing number of consumers entering the crypto space. MA pursues continuous endeavors to offer seamless cryptocurrency wallets and exchange experience, which result in more consumers shifting toward crypto cards for purchasing digital assets or incurring spending. In July 2021, Mastercard collaborated with a series of crypto companies in a bid to unveil a card offering and offer seamless cryptocurrency conversion.
PayPal enables customers to trade crypto assets through its digital wallet. PYPL has an offering in place named Checkout with Crypto, which is aimed at facilitating seamless online purchases utilizing cryptocurrencies. In August of this year, PayPal unveiled its cryptocurrency service in the U.K., thereby marking its foray into the country’s crypto market.
Square has made substantial investments in purchasing bitcoin (a crypto asset) over the passage of time. The entry of SQ into the bitcoin market with the Cash App product continues to contribute well to the company's quarterly results. In the third quarter of 2021, Cash App produced $1.8 billion of bitcoin revenues and $42 million of bitcoin gross profit. The figures improved 11% and 29% year over year, respectively, primarily due to the rise in bitcoin price.
Shares of Visa have inched up 0.5% in a year against the industry’s decline of 19.8%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
While Mastercard stock has gained 3.3% in a year. shares of PayPal and Square have lost 9.4% and 13.4%, respectively, in the same time frame.