Visa CFO says that cryptocurrency mania may be fading

This year, the crypto market has seen unprecedented growth, which has had a profitable ripple effect on third parties such as Visa. However, according to the company’s senior management, this situation may have begun to decrease.

Payment giant Newly released Financial results for the third quarter of fiscal 2021 show that data on cross-border and overseas transactions is bullish-a key indicator for analysts looking for early signs of a pandemic recovery.

Earlier this month, Visa has revealed that its crypto-enabled cards processed more than $1 billion in total expenditures in the first half of 2021. As crypto users deposit funds on crypto platforms in various jurisdictions, this is an important factor for overseas transactions. The amount has an impact. These effects are still visible in the company’s latest results for the third quarter. The report states:

“In the three months ending June 30, 2021, cross-border transaction volume, excluding European domestic transactions that drive our international transaction revenue, increased by 53% in fixed U.S. dollars. Total cross-border transaction volume in fixed U.S. dollars This was an increase of 47% during the quarter.”

However, in a new interview, Visa’s CFO Vasant Prabhu Say Most of the encryption-driven momentum behind the increase in cross-border spending is actually limited to the first two months of the quarter.

Prabhu highlighted the surge in cryptocurrency purchases in April and May, and pointed out that it has begun to fall back in June. In light of the faltering return of international travel, Prabhu warned that cross-border transaction volume may decline without being boosted by the booming cryptocurrency market.

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The overall situation of the last quarter shows that Visa has received considerable revenue from its overseas transaction processing, which is more profitable for the company than domestic expenditures. Overall, the company reported that payments using its cards have increased by 34% year-on-year—remember that most parts of the world were under strict lockdown last year. The company also reported that net income for the third quarter of 2021 was US$6.1 billion, an increase of 27%, exceeding the average analyst estimate of US$5.86 billion.

In a recent transaction, the report states that Visa recently signed Final agreement to acquire Currencycloud, A cross-border payment platform Supports approximately 500 banks and technical customers in more than 180 countries. Currencycloud recently established a partnership with the company behind it, Ripple Ripple, To jointly explore new mechanisms for cross-border transactions.