Visa and Mastercard push back on their cryptocurrency partnerships as several cryptocurrency firms collapseVisa and Mastercard – leading payment processing firms – have decided to pull back on their crypto push amid the collapse of several notable crypto firms. According to a
by Reuters, the payment platforms will pause the launch of crypto-related products and services until the market condition improves. The firms are also reportedly looking for an improvement in the crypto regulatory environment, as per people familiar with the matter.Notably, Visa has over 70 partnerships with crypto-focused firms. And, the payment firm had also partnered with the now-bankruptin October 2022.
Moreover, a Visa spokesperson stated that the failure of notable cryptocurrency firms was an “important reminder that we have a long way to go before crypto becomes a part of the mainstream payments and financial services.” The spokesperson, however, stated that these failures do not impact the firm’s strategy around digital currencies.
Meanwhile, a Mastercard is not new to the virtual currency space. The firm, too, has forged several partnerships in the digital currency market. Last year, Mastercard partnered with Nexo to launch the world’s first crypto-backed payment card. The card was initially released to only a select few European countries. And, it allowed users to spend without having to sell their cryptocurrencies.