Crypto frenzy could run out of steam, Visa chief financial officer says

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This year has seen unprecedented growth in the crypto markets, with lucrative ripple effects for third parties like Visa. This, however, may already start to decline, according to the company’s senior executives.

The payments giants recently released financial results for the third quarter of fiscal 2021 show bullish figures for cross-border and overseas transactions, a key metric for analysts on the lookout for early signs of a pandemic recovery.

Earlier this month, Visa revealed that its crypto cards processed more than $ 1 billion in total spending for the first half of 2021, registering an impact on overseas volume as crypto users deposited funds on crypto platforms in various jurisdictions. These effects are still visible in the company’s latest results for the third quarter, with the report indicating that:

Cross-border non-transaction volume in Europe, which drives our international transaction revenue, increased 53% in constant dollars for the quarter ended June 30, 2021. Total cross-border volume in constant dollars increased 47% in the quarter.

In a new interview, however, Visa CFO Vasant Prabhus said much of the crypto-generated momentum behind the increase in cross-border spending was in fact limited to the first two months of the quarter.

Highlighting the peak in crypto buying in April and May, Prabhu noted that it started to pull back in June. Given the faltering return of international travel, Prabhu warned that cross-border volume could be on the verge of declining without being supported by a booming crypto market.

Related: Altcoin Roundup: Crypto Credit Cards Could Be The Missing Link To Mass Adoption

The overall picture for the last quarter shows that Visa earned significant revenue from its overseas transaction processing, which is significantly more lucrative for the business than intra-national spending. Overall, the company reported a 34% year-over-year increase in payments using its cards, keeping in mind that much of the world was under restrictions. strict last year. The company also reported net revenue of $ 6.1 billion for the third quarter of 2021, an increase of 27%, beating the average of $ 5.86 billion of analyst estimates.

Among recent deals, the report notes Visa’s recent signing of a definitive agreement to acquire Currencycloud, a cross-border payments platform that supports around 500 banking and technology customers in more than 180 countries. Currencycloud recently partnered with Ripple, the company behind XRP, to jointly explore new mechanisms for cross-border transactions.

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