March 1, 2023

Visa, Mastercard Reportedly Delay Crypto Partnerships, Visa Denies

Visa, Mastercard Reportedly Delay Crypto Partnerships, Visa Denies Featured Image

Visa, Mastercard

Reuters reported that American payment processors Visa and Mastercard announced they will postpone their partnerships with crypto companies due to extraordinary bankruptcies happening in the crypto industry.

The announcement came following a period of close relations between the payment giants and crypto firms as Visa had a crypto strategy that targeted stablecoin settlements, while Mastercard was exploring opportunities of payment in USD Coin, Cointelegraph reported.

Visa and Mastercard pointed out that they would push back crypto-related services and products when the market conditions and the regulatory environment improve.

A spokesperson at Visa attributed the company’s move to bankruptcies and collapses, which the crypto scene saw recently, including the collapse of FTX, Celsius, Voyager Digital, and Three Arrows Capital, saying: “Recent high-profile failures in the crypto sector are an important reminder that we have a long way to go before crypto becomes a part of mainstream payments and financial services.”

The spokesman added that what happened does not change Visa’s strategy and focus.

Also, a spokesman at Mastercard asserted the continuation of their efforts to focus on blockchain technology, adding this helps the company address the current deficiency and try to build more efficient systems.

However, Cuy Sheffield, the head of products at Visa, dismissed the Reuters report, describing it as inaccurate. Sheffield tweeted: “Visa continues to partner with crypto companies to improve fiat on and off ramps as well as progress on our product roadmap to build new products that can facilitate stablecoin payments in a secure, compliant, and convenient way.”

Sheffield noted that despite the fluctuations in the crypto scene, Visa’s view toward the blockchain’s key role in the payment ecosystem did not change.

In October 2021, Mastercard introduced a new program to enable financial institutions to conduct crypto trading and make them benefit from its services. Called “Crypto Source,” Mastercard’s program, launched in partnership with Paxos Trust Company, a prominent regulated blockchain infrastructure platform, will allow users to buy, sell and hold cryptocurrencies.

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