Block announced that in Q4 2023, Cash App generated $66 million in Bitcoin gross profit up 90% year-over-year.
Global payment giant Visa has collaborated with Web3 infrastructure supplied Transak to launch cryptocurrency adoption by equipping another method to exchange crypto-fiat currencies without a centralised exchange.
In January 2024, the announcement revealed that the collaboration between Visa and Transak is set to enhance the service of converting crypto to fiat currency for users in over 145 countries via the integration of Visa Direct. Introducing the Visa Direct solution allows users to withdraw cryptocurrencies such as Bitcoin ($BTC) directly from a wallet like MetaMask to a Visa debit card. The integration improves transactional speed, potentially reducing the time for money transfers to fewer than 30 minutes; it is available immediately and enables one to exchange crypto to fiat and pay 130 million merchant locations where Visa is accepted, which is a notable improvement over the longer durations typical in conventional banking.
Visa Direct’s North America Head, Yanilsa Gonzalez-Ore, said, “By enabling real-time card withdrawals through Visa Direct, Transak is delivering a faster, simpler and more connected experience for its users— making it easier to convert crypto balances into fiat.”
Chief of investor relations and marketing for Transak, Harshit Gangwar, suggested that the collaboration signifies a significant turning point in bridging the crypto and traditional finance worlds and expands the number of options to convert cryptocurrencies to fiat currencies.
Without relying on centralised exchanges, the partnership allows users from 145 countries to convert at least 40 cryptos to fiat directly. According to Transak’s global coverage page, some supported countries consist of jurisdictions such as the United Arab Emirates, Turkey, Portugal, Singapore, Malta and Cyprus.
How this Partnership Serves Decentralised Finance
Gangwar, chief of investor relations and marketing for Transak, suggested that the partnership has significant benefits for users of decentralised systems and wallets such as MetaMask, Trust Wallet, and Ledger. Gangwar said, “MetaMask users can now effortlessly off-ramp directly from their wallet to the Visa card, which enhances the usability and practicality of their digital assets.”
MetaMask’s senior product manager, Lorenzo Santos, emphasised that the collaboration between Visa and Transak provides crucial functionality for MetaMask users. Santos said, “Transak’s integration with Visa opens new horizons for MetaMask users globally, providing more flexibility in smooth cryptocurrency to fiat conversions.” Gangwar highlighted that the platform is involved in the integration as it holds licences in multiple jurisdictions and ensures that the Know-Your-Customer (KYC) and anti-money laundering (AML) tech is in place. Recent reports show that the Head of Crypto at the financial behemoth, Cuy Sheffield, highlighted that Banks and financial institutions need to understand how best to serve their clients or see them get those services elsewhere.
Sheffield said, “We expect traditional fiat and legacy settlement rails to coexist with tokenised fiat running over global24/7 real-time blockchain networks for a long time.” He added, “We see our role as a bridge to meet our clients where they are regardless of preferred currency, settlement network, or form factor.”
Visa is one of the world’s largest payments companies and has been actively exploring cryptocurrency use cases. In 2020, Visa collaborated with the blockchain firm Circle to support USDC stablecoin on certain Visa cards. Circle tested cross-border fiat currency payments on the Ethereum (ETH) network a year later. In September 2023, Visa continued to expand the stablecoin support by supporting USDC payments on the Solana blockchain.