- CryptoSpend has announced a partnership with the payment network Visa, allowing users to spend their Bitcoin through Visa cards.
- This is the first time Aussies will be able to use crypto as a payment method.
- Both Visa and Mastercard aim to further expand their crypto-linked cards.
Aussies will soon be able to use their Bitcoin as a means of paying for services through Visa cards. The Australian fintech startup CryptoSpend has announced a partnership with the giant payment network Visa, allowing its users to spend their Bitcoin through Visa debit cards.
This will be the first time that cryptocurrencies can be used for payments in Australia. Andrew Grech, the CryptoSpend co-founder, asserted that more and more crypto traders are looking forward to being able to spend their cryptocurrency in stores. “Spending it [crypto] directly is a more convenient way of selling it,” he said.
Grech further added that there is a lot of demand for the cards. He stated:
We have a lot of demand for the card. If the market is green, someone could say it’s time to spend some of my profits. On the other side of the fence, another person might say it’s going to keep going up, I’ll hold onto it. But we have seen more spending volume when the price is going up.
Visa aims to make sure everything is forthright and lawful, therefore it will put a rigorous process in terms of privacy, KYC, and AML (anti-money laundering). Reportedly, Visa will announce the approval of this news in the coming days.
ASX-listed Novatti will issue the crypto debit cards starting this coming September. The leading institutional digital asset custody BitGo will provide custody of the crypto holdings. Other cryptocurrencies that would be spendable through these debit cards include Bitcoin Cash, Ethereum, and Ripple’s XRP.
Visa and Mastercard to Further Expand Crypto Utility
This is not the first time Visa proceeds to issue crypto debit cards. Previously, Visa had issued spending cards for the largest crypto exchange Binance, though these cards are not available in Australia.
In addition, a couple of weeks ago, Visa announced that their crypto debit cards have transacted more than $1 billion worth of cryptocurrency in the first six months of 2021. “We are doing a lot to create an ecosystem that makes crypto currency more usable and more like any other currency,” Vasant Prabhu, CFO at Visa, told CNBC.
On the other hand, Visa competitor Mastercard had dabbled into crypto last year following a partnership with the leading Bitcoin payment service provider BitPay. Earlier this year, Mastercard also stated that users are more often using crypto-linked debit cards for daily payments.
Previously, Mastercard conducted a survey revealing that 4 in 10 aim to use crypto-assets as a means of payment. Following the survey, Mastercard announced that businesses should adopt these innovations in order to satisfy their consumers’ needs. The credit card giant asserted that 68% prefer businesses that support the latest payment methods.