VISA-CRYPTO TRANSACTION IS A HUGE OPPORTUNITY FOR NEOBANKS

Crypto vs. Neobank

Most Crypto-friendly Neobanks will cater to retail customers; no one will concentrate on small and medium-sized businesses. In the light of global issues with conventional banks and existing needs for Crypto-friendly Neobanks, SMEs are already the most mature target audience:

• Approximately 500 startups have already kept ICOs (raising over $3 billion that they cannot openly use).
• Crypto-exchanges themselves.
• Crypto-payment startups.
• Other group representatives.

Furthermore, these SMEs are now carrying more retail clients (their staff, partners, and consumers) than those expected by current Crypto-friendly Neobanks in the future.

Visa’s technological strategy

On the other hand, Visa has more card partnerships with Cryptocurrency companies such as Coinbase, Crypto.com, and BlockFi.

Meanwhile, Visa CEO recently discussed the possibility of supporting stablecoins and central bank digital currencies, but it did not seem imminent. On the other hand, the firm is researching this field and has recently suggested an offline CBDC payment solution.

Visa regards Cryptocurrency as yet another network to endorse. “To the point that a particular digital currency becomes a recognised medium of trade, there is no reason why we cannot connect it to our network, which currently supports over 160 currencies,” CEO Al Kelly said in January.

Instead, Visa announced a new series of Cryptocurrency APIs that will enable banks to provide Cryptocurrency ownership and trading to their customers. In collaboration with Anchorage, a custody company recently awarded a digital asset banking charter, and Visa has invested $40 million. As a result, Visa is approaching Cryptocurrencies in a B2B2C manner. Business-to-business-to-consumer (B2B2C) is an e-commerce model that mixes business-to-business (B2B) and business-to-consumer (B2C) transactions with a full specific product or service operation.

Visa vs. Neobanks

Visa has partnered with First Boulevard, a Neobank, to launch the first pilot of its latest suite of Crypto APIs, which will enable consumers to buy, retain, and exchange digital assets.

First Boulevard will connect to infrastructure offered by Visa partner Anchorage, a federally chartered digital asset bank, to enable their customers to buy and sell bitcoin during the pilot.

Visa sees the test as a critical first step in its attempt to assist clients in accessing and integrating Crypto features through APIs as it aims to develop itself as a “network-of-networks.”

Visa CEO Alfred Kelly stated that the card company plans its payments network to manage a wide range of Cryptocurrency assets and has already signed agreements with 35 Crypto-markets organizations called BitPanda, BlockFi, etc.

“We’ve decided to make Visa the bridge between digital currencies and our worldwide network of 70 million customers, and today we are the leading network for Crypto wallets, with 35 Crypto platforms opting to issue with Visa,” says Jack Forestell, chief product officer at Visa. Through this pilot scheme, Visa wants to increase the value of Visa for our Neobank and financial institution clients by providing a convenient bridge to Crypto assets and blockchain networks.

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