According to New York-based research company MoffettNathanson reports, Payment services bigwigs Visa, Mastercard, and PayPal, do not see the growth of the cryptocurrency market as a threat, and they will continue to invest in the crypto industry.
The popular payment service giants have seen the crypto market as an opportunity to enter the market. There are various possible use cases for crypto-based payments in both online and offline transactions. The companies are also integrating cryptocurrencies with their existing systems to provide a better user experience and marketing opportunities. Payment providers like PayPal, VISA, Mastercard also see cryptocurrencies as a way to provide users more control over their money, which could be used for financial inclusion purposes.
The document highlights the increasing acceptance of cryptocurrency among the old payment service companies and their efforts to adjust to a changing world. Earlier this month, the three companies participated in the MoffettNathansons’ blockchain and crypto event.
Visa believes that cryptos value extends beyond the realm of payments. It is a Layer 2 technology that could work with the blockchain network, just as the company operates using fiat-based networks. Visa is also anticipating increasing volume over the next two to three years due to collaborations with crypto wallets. The company’s SVP and head of the global fintech Terry Angelos told MoffettNathanson.
At crypto exchanges and wallets, Mastercard benefits from cross-border crypto off-ramp and on-ramp flows. It believes that crypto is an opportunity to create brand new services, Raj Dhamodharan, EVP of digital asset and blockchain products and digital partnerships, explained. Mastercard is also looking to become an on-ramp for the NFT market and include cryptocurrencies in its multi-rail network to be native currencies to settle.
In addition, PayPal is investing in educational initiatives to reach a larger population. PayPal is also aiming to open up its platform to facilitate interactions with DeFi networks as well as secure bitcoin transfers into and out of digital wallets.