By George Ward
Crypto is a trend that cannot be ignored, as evidenced by VISA’s recent partnerships with over 65 crypto exchanges. This has led to an increase in the use of crypto-linked credit cards worldwide, with VISA reportedly processing $3.5 billion in cryptocurrency transactions in 2021.
There has recently been a surge in crypto investment and trading in the Middle East. Leila Serhan, a Senior Vice President at Visa, told the Jordan Times that cryptocurrencies are a digital payment option in the Middle East and North Africa.
She talked about how it has become popular. In the interview, she said they are not just people who buy cryptocurrencies but also people who use cryptocurrencies to facilitate digital commerce. However, she adds that it is impossible to ignore Cryptocurrency trends.
Around 400 million people worldwide are buying cryptocurrencies, and VISA sees itself as a network of networks. Cryptocurrency networks are arguably one of the networks that Visa would facilitate its exchange of money,” added Serhan.
In Q1 2022, more than $2.5 billion of payments from customers using crypto-based cards were processed into VISA earnings. According to VISA CFO Vasant Prabhu in a CNBC report, this number represents 70% of the total volume of firms’ fiscal year (FY) for last year.
The partnership with many exchanges has allowed Visa to issue Visa cards to users, allowing them to use their crypto card to purchase any product from any of the 80 million merchants worldwide that accept Visa.
“This is what we are focusing on right now, and of course, regulations must permit it,” Serhan said, adding that if a country’s regulations permit it, the company will facilitate the transactional use of cryptocurrency.
Cybersecurity Risks
The increasing use of cryptocurrencies in digital payments has raised cybersecurity concerns. VISA continues to innovate and invest in cybersecurity under Serhan’s leadership. “I am happy that our network is safe from fraud”. “As we move into the digital world, fraudsters are becoming more sophisticated, so cybersecurity is paramount to us.”
As criminals improve, more users fall prey to scammers and hackers. Digital financial literacy is therefore required to prevent such attacks. VISA has launched several initiatives to educate users on e-commerce security and digital financial literacy to address this issue.
Serhan also believes digital payments are essential to the economic growth of the Middle East’s SMEs. She also stated, “Small businesses are most likely to accept digital payments”. “Once they start using these payment services, they build good credit scores and can have easy access to funding and small loans,” she added.