Leading global payments firm, Visa, is diving deeper into the crypto sector through strategic collaborations. To achieve this growth, the firm has approved CryptoSpend, a startup firm that two students developed at the University of Technology. The new card will be used as a debit card that is powered by crypto assets.
The two students worked with Visa through an intensive process to develop the crypto debit card. The process of developing this card ensured there would be a high level of privacy and security regarding user information. Visa also ensures that the card was developed in compliance with the anti-money laundering (AML) laws set in Australia.
Approval Slated for This Week
Visa is still debating on the decision to approve the Visa debit card. The approval for the card is expected to happen later this week. one this happens, the crypto debit card company can begin issuing these cards to their customers.
Australians who get a chance to acquire these cards can use them to make retail payments and even pay for hospitality services using bitcoin and other cryptocurrencies compatible with the card.
Besides the card, the company has also developed the CryptoSpend app that customers can use to make direct purchases using crypto instead of going through the rigorous process of converting cryptocurrencies into fiat currency. This app will boost innovation, given that the other apps that offer the same services do not allow direct retail purchases with crypto.
In addition, the crypto debit card will be a game-changer in the Australian financial market. This will be the first time that customers can use cryptocurrencies using a payment card in Australia. CryptoSpend will outdo what Visa and MasterCard have been able to achieve in terms of offering global crypto services.
The co-founder of CryptoSpend, Andrew Grech, had an interview with CoinDesk, where he stated that the debit card would offer Australians a unique way to spend their cryptocurrency holdings daily by facilitating retail payments.
Other crypto firms will also be involved to facilitate the working process of the card. Novatti, a company listed at the Australian Stock Exchange, will be responsible for issuing the card. According to the scheduled timeline, the card will be available in the Australian financial market in September.
BitGo – Crypto Custodian
The other firm that will also be involved in this process is BitGo. BitGo is a crypto custodian licensed in New York.
Bitcoin is not the only cryptocurrency that the new CryptoSpend card will support. Other currencies that will be facilitated for users include Bitcoin Cash, Ethereum, and XRP. On top of that, users can also withdraw funds using the card besides paying for their bills.
Visa and MasterCard Joining the Race
Leading global payment firms are working hard to offer crypto-related services amidst the current boom. Visa and MasterCard want to ensure their customers and businesses around the globe can make payments on their networks. Visa issued a report for the first half of 2021, where it stated that over $1 billion was spent using crypto Visa cards.
Besides the two, PayPal is also working on launching crypto-based services to enable its users to access crypto. PayPal launched a crypto checkout service for US users that allows them to convert bitcoin into fiat currency that can later be used to make purchases from merchants in the United States.
This development proves that the Australian market has increased demand for cryptocurrencies and digital assets. Towards the end of the first quarter of this year, Crypto.com, a crypto firm based in Hong Kong, became a member of Visa Australia. This membership allows the firm to launch a crypto Visa card in Australia.
Crypto.com is now licensed as a firm in Australia that facilitates the direct issuance of Visa debit cards. The crypto firm is also planning to launch its crypto card in the future.
Visa has also extended its offerings to ensure millions of global users can use cards to pay with cryptocurrencies. Visa authorized leading global bitcoin exchange firms such as Binance to issue spending cards. However, these cards cannot be accessed in Australia.
Another crypto firm that also offers a similar service is BTC.com. The firm launched an EFTPOS card to allow customers to spend cryptocurrencies. However, BTC.com does not have a crypto wallet.