It is often said that cryptocurrencies could make the major payment networks superfluous.
If you pay directly with Bitcoin, Ethereum or stablecoins, why do you need Visa ($V (+0,74%) ) or Mastercard ($MA (+0,33%) )?
The reality: Both companies have long been working on integrating digital currencies into their network.
Instead of being displaced, they also want to earn money from every transaction in the crypto world.
1. how Visa & Mastercard are integrating crypto 🔗
- Crypto cards: Both cooperate with exchanges such as Coinbase, Crypto.com or Binance. Customers pay from crypto wallets and the conversion to fiat takes place automatically in the background. Merchants continue to receive euros or dollars.
- Stablecoin processing: Visa already tested initial settlements with USDC via Ethereum in 2021. Pilot projects with Solana were added in 2023, including with Worldpay and Nuvei. Mastercard is also relying on stablecoins and is working with banks and FinTechs to make corresponding transactions suitable for everyday use.
- Partnerships: Visa cooperates closely with Circle, the issuer of USDC, and with FinTechs such as Crypto.com. Mastercard is building its own platforms for CBDCs and is testing the integration of digital sovereign currencies together with central banks.
2. why this is clever 🤔
- Both think pragmatically: it is not important which currency is used. The only important thing is that it runs via the respective network. Dollar, euro, stablecoin or Bitcoin, Visa and Mastercard earn money from every transaction.
- They are therefore not positioning themselves as opponents, but as bridge builders between traditional payment transactions and the crypto world.
3. opportunities for investors 🌐
- Hedging: If crypto becomes suitable for the masses, Visa and Mastercard will not lose market share, but will benefit through integration.
- Growth: Stablecoins could make cross-border payments in particular cheaper and faster, which offers enormous potential.
- Network effects: As both are already accepted worldwide, new payment methods can be rolled out globally very quickly.
4. conclusion 👉
Visa and Mastercard do not see crypto as a threat, but as an opportunity.
They are integrating digital currencies into their networks step by step and are thus also earning money from many transactions in a more digital financial world.
