Almost a year back, Bloomberg published a warning note for traditional payment processors like Visa and PayPal. Essentially, it shared the viewpoint of MoffettNathanson analyst Lisa Ellis. She believes that cryptocurrencies pose an “existential threat” to Visa, PayPal and the like. And it seems Visa is not at all taking the threat lightly.
In a recent tweet, Cuy Sheffield, Head of Cryptocurrency at Visa, invited crypto wallets to its Fintech Fast Track program. With this association, the wallets would be able to issue Visa cards to their cryptocurrency users.
— Cuy Sheffield (@cuysheffield) February 21, 2020
There is no doubt that cryptocurrencies directly compete with payment processors like Visa. In spite of this Visa is ceaselessly partnering with crypto fintech organizations. Additionally, it is offering its services too. This shows how effective their technology’s capabilities are.
Unlike JPMorgan, Visa is not directly venturing into the crypto space. But it is strengthening its presence at the intersection of fiat payments and cryptocurrency. And promises to deliver value to the cryptocurrency fintech ecosystem.
Why does Visa have a ‘Head of Crypto’?
For many years Visa has been facing this toxic question. Will cryptocurrency render Visa obsolete?
But the more possible scenario is that the cryptocurrency ecosystem might commodify players like Visa. As per analyst Lisa Ellis, there is another risk. Visa might lose ground in cross-border and business-to-business payments to cryptocurrencies.
In June 2019, Visa started embracing crypto openly. The payment processor giant started building an in-house crypto team. In the same month, they moved Cuy Sheffield to the chair of crypto-head. And this is when a serious crypto roadmap fabrication started.
A clever engagement
Visa’s Crypto Head seems to have devised…