Visa launches crypto advisory services among increased awareness and adoption
By Gaia Lamperti
The case for crypto is getting stronger for financial institutions, with now even payments giant Visa announcing the launch of Global Crypto Advisory Practice, an offering within Visa Consulting & Analytics designed to help clients and partners advance their own crypto journey. The new service comes at a moment when digital currencies are making their way into the popular consciousness, with awareness of crypto among financial decision-makers reaching its peak at 94% globally, according to research by Visa.
“We’ve seen a material shift in our clients’ mindset in the last year, from a desire to explore and experiment with crypto, to actually building a strategy and product roadmap,” Carl Rutstein, Global Head, Visa Consulting & Analytics said. The service will help the company’s customers and partners to explore a crypto offering, delve into NFTs and understand the entire crypto ecosystem.
Visa’s global network of consultants and product experts works with over 60 crypto platforms, quickly gaining expertise to help financial institutions evaluate the crypto opportunity, develop concrete strategies, and pilot new user experiences and innovations like crypto rewards programs and CBDC-integrated consumer wallets. The company has already shown interest and investments in the crypto world this year, with the purchase of a $150,000 NFT and partnerships with DeFi projects.
“We came to Visa to learn more about digital currency and the use cases that are most relevant for various business lines as we serve our customers in the years ahead,” commented Uma Wilson, Executive Vice President, Chief Information and Product Officer at UMB Bank, one of Visa’s partners. “VCA helped us begin to explore a roadmap of a strategy – from product and partner selection to cross-functional considerations such as Technology, Finance, Risk, and Compliance.”
The study
Visa’s new global research, “The Crypto Phenomenon: Consumer Attitudes & Usage,” showed significant awareness and adoption among consumers globally whcih might lead to more interest in building crypto solutions among its clients too.
Surveying more than 6,000 financial decision-makers across eight markets (Argentina, Australia, Brazil, Germany, Hong Kong, South Africa, the UK and US), the study found that nearly one-third of respondents have directly engaged with crypto – either as an investment vehicle or as a medium of exchange. And globally, nearly 40% of crypto owners surveyed report they would be likely or very likely to switch their primary bank to one that offers crypto-related products in the next 12 months.
“Crypto represents a technological shift for money movement and digital ownership,” said Terry Angelos, SVP, and Global Head of FinTech at Visa. “As consumers change their approach to investing, where they bank, and their views on the future of money, every financial institution will need a crypto strategy.”
Key takeaways
- The crypto headlines are having an impact. Awareness of crypto is almost universal at 94% globally among survey participants with discretion over their household finances.
- A significant segment is using or investing with crypto: Nearly one in three crypto-aware adults already own or use cryptocurrency, and the majority of that group (62%) say their use has increased in the past year.
- Engagement is higher in emerging markets. 37% of the crypto-aware consumers surveyed in emerging markets use or own crypto, compared to 29% in developed markets.
- Key motivators include wealth-building and belief in crypto as the future of financial services. The biggest drivers of owning and using cryptocurrency are to take part in the “financial way of the future” (42%) and to build wealth (41%) – both forward-looking motivators.
- Crypto-linked cards and crypto rewards are attractive. Among current crypto owners, 81% express interest in crypto-linked cards, which allow you to convert and spend crypto at the retailers where you shop in the same way you can use a debit or credit card. 84% are interested in crypto rewards, which allow you to earn crypto as a reward for your card spending.
- Consumers are willing to switch banks in search of crypto products. Globally, 18% of survey participants say they would be likely or very likely to switch their primary bank to one that offers crypto-related products in the next 12 months. This is particularly true for emerging markets, which jumps to 24%. Among consumers who already own cryptocurrency, nearly 40% are willing to make the switch.
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