A senior executive at the California-based financial services company has revealed plans to introduce crypto payment cards in the region.
Global payment solutions company Visa has announced plans to launch and implement the integration of Bitcoin and other crypto-currencies into its platform in Brazil. The new business model would eliminate intermediaries, allowing users to invest directly in crypto-currencies and associated exchange-traded funds (ETFs).
In an interview with a local newspaper in Brazil, the company’s deputy director of new business, Eduardo Abreu, revealed that the planned move would see the company move towards establishing crypto assets as stores of value and payment methods. Abreu said that in order to achieve these higher levels of adoption, an environment had to be created where crypto-currencies and fiat currencies could interact freely.
The region is ready for change
While pushing for the interoperability of cryptos and fiat currencies, Abreu added that, as with other transactions, users should be able to receive any cashback in the form of crypto.
“Brazilians already have the culture of receiving card points, miles, discounts, etc. Why not also receive crypto-currencies with their credit card?”.
The idea of integration is not really new given that Fernando Teles, the CEO of Visa in Brazil, mentioned it in March. At the time, he talked about using an application programming interface (API) to implement tokenized payments. The payments company was already considering working with digital banks to achieve this integration.
Having already paved the way through partnerships with financial institutions in Brazil, including Rippio, Alterbank and Zro Bank, Visa is well positioned to implement this new strategy. It intends to leverage its relationships with these companies to offer credit cards linking customer accounts to crypto-currency exchange platforms and other similar businesses in the financial landscape.
B2B blockchain to improve transparency in the NFT space
Abreu added that the company was also working on a blockchain-based alternative that would be used to settle transactions in business-to-business (B2B) exchanges. He noted that such a system would go a long way towards transparency, as all parties involved in the transaction would be able to validate it.
The vice president of new business also addressed the topic of non-fungible tokens (NFTs). According to Abreu, last month’s $150,000 purchase of a CryptoPunk was just one part of Visa’s growing business in the espace NFT, as Visa Brazil is working on an NFT initiative that will be launched soon.
As Visa’s Cuy Sheffield explained late last month, the purchase of CryptoPunk was made with the intention of understanding the entire purchasing process to put the company in a good position to deal with customers in the future.