VISA Drive Direct Crypto Payments

Visa is taking significant strides in the cryptocurrency space by introducing a new method that bypasses centralized exchanges (CEXes) for crypto-to-fiat conversions. In a collaboration with Web3 infrastructure provider Transak, Visa has unveiled the option for users to directly withdraw cryptocurrencies like Bitcoin to a Visa debit card through the Visa Direct solution, as announced on January 30.

This groundbreaking integration, available immediately, enables users to seamlessly convert cryptocurrency to fiat and utilize it at over 130 million merchant locations worldwide that accept Visa. Yanilsa Gonzalez-Ore, North America Head of Visa Direct, emphasized the convenience and speed this offers, simplifying the process of converting crypto balances into fiat currency.

Transak’s marketing head and investor relations lead, Harshit Gangwar, noted that this partnership marks a significant step in merging the crypto and traditional finance sectors, offering a wider range of options for crypto-to-fiat conversion. Users from 145 countries can now convert at least 40 different cryptocurrencies directly to fiat without the need for a centralized exchange, with support extending to jurisdictions including Cyprus, Malta, Singapore, Turkey, Portugal, and the United Arab Emirates.

Gangwar highlighted the broader impact of this integration, stating, “This is a major step towards mainstream acceptance and utilization of cryptocurrencies,” and pointed out the enhanced accessibility and convenience of these transactions. The integration is especially advantageous for users of decentralized platforms and wallets such as MetaMask, Ledger, Trust Wallet, and others, providing a straightforward method to transfer funds from their wallet to a Visa card.

Lorenzo Santos, MetaMask’s senior product manager, echoed the sentiment, acknowledging that the collaboration between Visa and Transak significantly broadens the capabilities for MetaMask users, offering greater ease in converting cryptocurrency to fiat.

Transak plays a crucial role in this integration, as it possesses the necessary licenses across multiple jurisdictions and maintains robust Know-Your-Customer (KYC) and Anti-Money Laundering (AML) protocols. This ensures that Transak can legally facilitate these transactions by verifying users, according to Gangwar.

Visa, a global leader in the payments industry, has been actively engaging with cryptocurrency, demonstrating its commitment to exploring and expanding the utility of digital assets. The company’s venture into the crypto world began in 2020 with a partnership with blockchain firm Circle to support the USDC stablecoin on certain Visa cards. More recently, in September 2023, Visa introduced support for USDC payments settled on the Solana blockchain, furthering its integration of the stablecoin.