Payment giant Visa announced this week that it has partnered with 50 cryptocurrency platforms globally to launch crypto-linked credit card programs. In the first half of 2021 alone, spending on these cryptocurrency credit cards exceeded $1 billion.
How Crypto-Linked Credit Cards Work
Visa and Mastercard now offer credit cards tied to cryptocurrency assets, typically issued in collaboration with crypto exchanges. Key features include:
- Seamless Conversion: When a purchase is made, the system automatically converts crypto to local currency for merchant settlement.
- Merchant Acceptance: These cards are accepted at 70 million merchants worldwide, bridging the gap between crypto and traditional commerce.
- Enhanced Rewards: Many crypto cards offer higher cashback or rewards compared to standard fiat currency cards.
👉 Discover how crypto payments are revolutionizing finance
The Rise of Stablecoins in Crypto Payments
Visa highlighted the growing role of stablecoins—cryptocurrencies pegged to fiat currencies like the USD—in this market:
- Market Volume: Over $100 billion in stablecoins currently circulates globally.
- Transaction Scale: Monthly stablecoin transactions on public blockchains surpass hundreds of billions of dollars.
Consumer Trends in Crypto Payments
A Mastercard survey from May 2021 reveals shifting consumer attitudes:
| Demographic | Interest in Crypto Payments | Adoption Drivers |
|---|---|---|
| Global Users | 40% | Ease of use, security |
| Millennials | 75% | Better crypto education |
Key findings:
– 93% of Mastercard users are open to emerging payment methods (e.g., crypto, biometrics, QR codes).
– Millennials show the highest willingness to adopt crypto once they understand its utility.
FAQs
1. Can I use a crypto credit card anywhere?
Yes! Visa’s crypto cards work at 70+ million merchants globally, just like traditional cards.
2. How are stablecoins different from Bitcoin?
Stablecoins are pegged to fiat currencies (e.g., USDT to USD), minimizing volatility compared to assets like Bitcoin.
3. Why do crypto cards offer better rewards?
Issuers incentivize adoption by sharing revenue from transaction fees or crypto trading volumes.