The companies reportedly said they plan to renew crypto-related partnerships and deals when "market conditions and the regulatory environment improve.”
Payment-processing corporations Visa and Mastercard are reportedly turning their backs on crypto-related partnerships and initiatives.
According to the Reuters report shared on February 28th, the move from payment giants comes after “high-profile” collapses shook the crypto industry.
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In 2022, several crypto-related firms closed their doors. The most significant downfalls started in May when cryptocurrencies Terra (LUNA) and TerraUSD (USDT) crashed. Following that, the end came to firms like Three Arrow Capital (3AC), Voyager, Celsius, BlockFi, and FTX.
The people familiar with the matter highlighted that both companies decided to hold back from launching new crypto-related products or initiatives “until market conditions and the regulatory environment improve.”
Regarding the matter, Visa’s spokesperson stated that crypto still has a long way to go before it becomes an integral part of “mainstream payments.”
Recent high-profile failures in the crypto sector are an important reminder that we have a long way to go before crypto becomes a part of mainstream payments and financial services.
Despite its plans to hold back from crypto partnerships, Visa’s spokesperson highlighted that the firm is not abandoning its long-term plans to incorporate crypto into its operations.
On the other hand, Mastercard’s representative said that behind the shut doors, the company will work on improving “underlying blockchain technology.”
Our efforts continue to focus on the underlying blockchain technology and how that can be applied to help address current pain points and build more efficient systems.
In 2022, Visa collaborated with Blockchain.com to launch a debit card with a 1% crypto cash back. On top of that, in November, Visa joined hands with Crypto.com to host an NFT auction right before the FIFA World Cup. It is worth noting that a month before FTX’s collapse, Visa started a “long-term global partnership” with a troubled crypto exchange.
Since the beginning of 2022, Mastercard has launched several crypto-related initiatives and collaborated with Coinbase, Binance, Paxos, Polygon, Bit2Me, and other crypto-related firms.
