While the mainstream media often treats cryptocurrency and blockchain technology as passing trends or novelties, the reality is that these technologies continue to integrate themselves into the financial landscape. Moreover, despite the skepticism, strategic partnerships between significant payment providers and crypto platforms are emerging, showing that this shift is about strategic integration rather than mere experimentation.
Lama Forges Ahead With Visa Partnership
One notable partnership is between Visa and Lama, a finance app that combines traditional and modern finance. Lama provides an ecosystem where users can hold and transact in both traditional and cryptocurrencies.
The company offers several products, including Lama Visa Cards, Crypto Earn accounts, Crypto Investment accounts, and Crypto Loans. Moreover, it plans to launch an NFT marketplace by Q3/Q4 2023, promising an easy way for users to trade and follow the NFT market without needing extensive blockchain knowledge.
The partnership with Visa provides Lama users with virtual and physical card options, thus enabling easy spending of cryptocurrencies at brick-and-mortar stores or online platforms. The card, linked to a user account, facilitates the conversion of cryptocurrencies to fiat currencies at the point of sale, making for a seamless spending experience akin to a traditional debit or credit card.
This partnership underscores the growing integration of cryptocurrencies into traditional payment systems, pushing toward the mainstream adoption of digital currencies.
Visa Keeps Exploring New Options In Crypto
It’s noteworthy that Visa’s engagement with cryptocurrency extends beyond this company. At the end of March, Visa announced it’s working with digital asset bank Anchorage to allow partners to settle transactions in USD Coin (USDC), a dollar-pegged stablecoin. This move marked the first time a Visa card partner could settle in cryptocurrency.
Over the years, Visa has also explored enterprise blockchain technologies and invested in crypto companies, solidifying its commitment to the crypto space.
Parallel to Visa’s endeavours, Mastercard announced plans to support crypto, permitting merchants and end-users to engage in cryptocurrency transactions. Like Visa, Mastercard has previously enabled third-party cryptocurrency companies to create payment cards on its network. It has developed enterprise blockchain solutions, showing a similar dedication to integrating crypto into its operations.
PayPal, another major player in the financial services industry, has taken a slightly different approach. In 2020, PayPal introduced features allowing users to buy, sell, and spend crypto. The service is available to U.S. customers who can trade four different cryptocurrencies: Bitcoin, Ethereum, Litecoin, and Bitcoin Cash. PayPal has also invested in crypto startups and continues to explore blockchain technologies.
The Future of Payments Involves Cryptocurrency
Partnerships between major payment providers and crypto platforms are strategic moves to integrate digital currencies into traditional financial systems. These partnerships demonstrate that cryptocurrencies are not a fad but are steadily becoming a significant tool in the financial landscape.
There are still a few gaps to fill, such as the specific details about the partnerships between Visa, Mastercard, and PayPal with other crypto platforms. However, this will provide a more comprehensive picture of these companies’ strategic moves in the crypto space.
It will also be helpful to explore the impact these partnerships have on the adoption of digital currencies and how they change how we conduct financial transactions.