Visa crypto-linked card usage topped $2.5 billion in its first quarter

Crypto-card payments accounted for over 70% of all fiscal 2021 volume, signaling a growing use of digital assets.

Visa crypto-linked card usage topped $2.5 billion in its first quarter

During the first quarter of fiscal 2022, Visa's customers made $2.5 billion in payments using its crypto-linked cards, according to earnings call on Thursday.

Crypto-card payments accounted for over 70% of all crypto volume in 2021.

CNBC interviewed Visa CFO Vasant Prabhu, who expressed optimism about the development.

According to him, consumers are keen on having a Visa card linked to a crypto platform because it allows them to manage purchases and fund payments instantly and seamlessly.

Visa cards were used to purchase only $1 billion worth of crypto in the first half of 2021.

The volume is still a fraction of what Visa handled in crypto spending in 2019-although CNBC reported in July that Visa didn't release exact figures at that time.

By linking crypto to Visa, customers can use the cards anywhere that accepts the payment system.

Merchants don't need to be familiar with crypto in any way. The payment processor does the conversions on the back end, while they receive the transactions in fiat like typical Visa transactions.

Prabhu told CNBC that people are spending crypto-linked cards on products, restaurants and travel. "These cards tend to be treated like regular bank accounts."

Also, the company announced that it had increased the number of partnerships to over 65 in order to facilitate the service. Companies like Coinbase, Circle, and BlockFi are among them.

The crypto industry and the industry's adoption as a whole have been of great interest to Visa.

Financial institutions can now take advantage of the company's crypto-consultation services, which were launched in December.

Besides collaborating with Micash Johnson to educate artists about how NFTs can help them monetize their art, the payments giant also recently partnered with the artist to promote the benefit of NFTs to artists.