Visa, Mastercard stop crypto push due to business collapse

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Visa, Mastercard stop crypto push due to business collapse

US financial giants Visa and Mastercard are maintaining plans to form new partnerships with crypto firms after a string of high-profile failures shook faith in the industry, people familiar with the matter said. in Reuters.

The crypto industry saw a dramatic change in fortunes in 2022 as the bankruptcy of major businesses FTX and BlockFi disrupted investors and increased regulatory scrutiny in the sector.

Both Visa and Mastercard have decided to push back the launch of some crypto-related products and services until market conditions and the regulatory environment improve, said the people, who asked not to be identified because of the discussions. confidentiality.

“The recent high volatility in the crypto sector is an important reminder that we have a long way to go before crypto becomes part of mainstream payments and financial services,” said a a spokesperson for Visa, the largest payment processor in the world.

This does not change the crypto company’s strategy and focus, however, the spokesperson added.

A spokesperson for Mastercard said: “Our efforts continue to focus on blockchain technology and how it can be used to help solve existing pain points and create better systems. then good.”


In the past two years, major credit card companies have warmed to crypto as the asset class’ popularity has plummeted, and some have seen it as the next big thing in finance.

The card companies, which collect a small percentage of the value of the transactions they manage, announced several partnerships with crypto companies and set up special teams to study blockchain technology.

MasterCard once partnered with crypto lender Nexo in April to launch what it called the world’s first “crypto-backed” payment card.

In November, Visa disconnected its international agreement with FTX, just a month after announcing an expanded partnership and deal.

Reuters Graphics Reuters Graphics

Reuters Graphics Reuters Graphics

American Express card company said in 2021 will consider using crypto as an option that can redeem points in the future.

But crypto tokens are not seen as a priority in the near future, a common comment on the subject said.

“In the near term, we do not see crypto replacing our core payment and lending services,” an AmEx spokesperson said in an emailed statement, adding that it is still under investigation. by the company’s useful subject for the technology.

“They can’t and shouldn’t move forward unless there’s a clear mandate,” said Thomas Hayes, chairman and CEO of investment firm Great Hill Capital.

“The delays are not related to their core business – because it remains strong. It is related to an uncertain regulatory environment for crypto and the demand/interest for crypto services decreases in the near future.”


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