On Tuesday, September 8, 2020, news emerged of a new partnership in the financial technology world. Visa, one of the most prominent names in finances, is partnering with the cryptocurrency company Cred. This merger sets the stage for what’s to come for crypto progress in the fintech world.
With Cred, you open a credit line where you receive rewards for paying your monthly bill. The difference between this platform and other similar apps is that Cred works with cryptocurrency. Cred is a digital assent lending program. It’s a form of mobile banking that lets you commit to certain digital funds, like Bitcoin, accrue a balance and then keep earning.
Now, Visa is incorporating Cred into its fast track program, which had a United States launch in July 2019. This program seeks to expand Visa’s borrowing and lending services. With the rise of cryptocurrency, this expansion is now possible with the help of Cred.
The lending service will have access to sending interest payments to specific bank accounts within Visa’s community. In a unique bonus, Cred will also be able to issue a crypto line of credit to various users. With this credit line, people can accrue digital currencies of all kinds.
Overall, the fast track program helps Visa’s global reach. With cryptocurrency becoming more popular in the fintech realm, this partnership comes at the right time. It pushes forward Visa’s crypto goals.
Visa’s Cryptocurrency Path
Visa has been a leader in adopting digital currencies throughout the world. Currently, the financial service works with 25 different digital currencies and is seeking to expand even more. It began its crypto partnerships with companies like Coinbase and Fold — which initiated conversations about digital currencies becoming more standard.
Now, the fast track program has Cred’s support, making it easier for fintech companies to work with Visa. Once merchants start adapting Visa’s crypto services, then customers can start paying with currencies like Bitcoin.
The progress that Visa makes works towards the bigger picture of standardizing cryptocurrencies. As big companies like Visa and Mastercard integrate digital currencies, the more chance there is of crypto services sticking around for the long run.
Part of the reason this form of payment has become so popular is because of its decentralized nature. Cryptocurrencies use blockchain technology that stores all transactions in individual “blocks” that are hard to manipulate or gain access to after it becomes final. Cryptocurrencies have drawn people in as a new way to interact in the digital world.
It will then be interesting to see how Visa’s partnership with Cred upholds the unique nature of cryptocurrencies. Regardless, it’s a powerful step towards standardizing the use of this digital money. Visa and Cred are thus setting the stage for other financial services to follow and adapt to.
A Crypto-Lending World
Visa is an example of progress when it comes to integrating digital currencies. With investors always looking for new opportunities, and consumers adapting to the new norms of the tech world, partnering with Cred is a wise decision. It shows Visa customers that the company is serious about expanding what technology can do for banking.
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