Visa Inc.’s ( V Quick Quote V - Free Report) partnership with Nuvei Corporation ( NVEI Quick Quote NVEI - Free Report) just got stronger, with the latter announcing the deployment of branded Visa debit cards in the U.K. and European Economic Area (“EEA”). Canadian payments firm, Nuvei, is rolling out the cards to its partners through its subsidiary Simplex, a fiat-cryptocurrency gateway provider.
In October 2021, Visa and Nuvei commenced collaboration to expand digital payouts in the United States. The latest move reinforces their partnership’s presence in the European market. The new cards will use the Visa Principal Membership and EMI license to serve clients with a simple path to spend crypto anywhere Visa is received.
Nuvei acquired Simplex last May for $250 million cash. The Simplex Banking will enable Nuvei to provide its clients with a simplified fiat-to-crypto on-ramp and off-ramp process. It will help the clients to use and spend crypto sales funds in a unified manner. The latest product builds on Nuvei’s crypto-friendly debit cards, which were provided to blockchain finance ecosystem COTI in September.
The latest move enables Visa to enhance the crypto ecosystem and reduce the gap between crypto and traditional finance. Visa is expected to provide a simple and secured path for crypto spendings. This will optimize the crypto ecosystem and digital asset payments, reduce risks, time-to-market and costs. Earlier this month, the company unveiled Global Crypto Advisory Practice in a bid to assist clients and partners with financial decisions regarding crypto products. The new offering is part of Visa’s payments consulting arm — Visa Consulting & Analytics (“VCA”), which comprises several well-versed consultants and data scientists.
The newly launched service is anticipated to be of great help to financial institutions interested in launching crypto products or central banks attempting to venture into digital currencies. At the same time, the move is intended to bolster Visa’s crypto solutions and capabilities. Visa’s growing proficiency in the crypto ecosystem and partnership with Nuvei in the huge European market are likely to contribute to its top-line growth. Visa seems well-poised to capitalize on the prevailing scenario since the global leader in digital payments works closely with more than 60 crypto platforms.
Peers with Crypto Presence
Just like Visa, other companies like
Mastercard Incorporated ( MA Quick Quote MA - Free Report) and PayPal Holdings, Inc. ( PYPL Quick Quote PYPL - Free Report) have also made their moves to capitalize on the increasing popularity of cryptocurrencies.
In July 2021, Mastercard collaborated with a series of crypto companies in a bid to unveil a card offering and offer seamless cryptocurrency conversion. Mastercard has been collaborating with cryptocurrency platforms to tap the growing number of consumers entering the crypto space. MA pursues continuous endeavors to offer seamless cryptocurrency wallets and exchange experience, which result in more consumers shifting toward crypto cards for purchasing digital assets or incurring spending. Early-November, Mastercard announced a partnership with Amber Group, Bitkub and CoinJar to provide crypto-funded Mastercard payment cards in the Asia Pacific region.
PayPal enables customers to trade crypto assets through its digital wallet. Last year, it launched a service to allow its clients to buy, sell and hold cryptocurrency directly from their PayPal account. PYPL has an offering in place named Checkout with Crypto, which is aimed at facilitating seamless online purchases utilizing cryptocurrencies. In August 2021, PayPal unveiled its cryptocurrency service in the U.K., thereby marking its foray into the country’s crypto market.
Price Performance & Zacks Rank
Shares of Visa increased 1.3% in the past year against the
industry’s 18.8% decline. Image Source: Zacks Investment Research
The company currently has a Zacks Rank #3 (Hold). You can see
. the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here