Payment Service Providers See Cryptocurrency as an Opportunity, Not a Threat
Payment services providers behemoths Visa, Mastercard, and PayPal do not perceive the emergence of the crypto business as a danger, and both will continue to invest throughout the cryptocurrency ecosystem, according to a report issued Wednesday by New York-based research company MoffettNathanson.
The statement emphasizes the rising acceptance of cryptocurrency by older payment service providers, as well as their efforts to adapt to a changing environment. Earlier this month, the three businesses spoke at MoffettNathanson‘s crypto and blockchain event.
Visa sees cryptocurrency’s use going beyond payments, and it views itself as a Layer 2 solution that can function on top of the blockchain network in the same way that it does with fiat-based networks. Visa’s SVP and global fintech head Terry Angelos told MoffettNathanson that the business expects high volume growth from partnerships with crypto wallets over the next one to two years.
According to Raj Dhamodharan, EVP of blockchain and digital asset products, Mastercard benefits from cross-border crypto on- and off-ramp movements at crypto exchanges and wallets, and views crypto as a chance to create new products. The company also intends to become an on-ramp to the NFT marketplace and to integrate cryptocurrencies as native currency for settlement into its multi-rail network.
On the meanwhile, PayPal is investing in educational projects in the aim of reaching a larger audience. According to Edwin Aoki, the business’s tech fellow and CTO of blockchain, crypto, and digital currencies, the company is also working on expanding its platform to allow interaction with DeFi networks, as well as the ability for customers to safely move crypto in and out of its digital wallet.