Visa and VALR Forge Historic Partnership to Transform South Africa’s Crypto Landscape

• Visa and VALR are partnering to set up a new crypto payment system amid SA’s crypto ecosystem
• In 2020, Binance formed a Visa-Crypto partnership to provide a Visa debit card for its clientele.
• Well-known Visa-Crypto Partnerships are with Binance, Crypto, CoinBase, and BlockFi. 

Over the years, the crypto industry has gradually expanded beyond its primary applications. Since Bitcoin gained a valuation of $ 1,000, investors, developers, governments, and entrepreneurs globally have realized digital assets’ true potential. From this epiphany, multiple altcoins emerged, new blockchain-based applications rose, and by 2020, cryptocurrency became a common concept amid the fourth industrial revolution.

Africa has recently hugged the crypto spotlight due to its high compatibility with blockchain technology. As a result, numerous crypto titans like Binance, Coinbase, Polgon, Cardano, and Ethereum have kickstarted several projects to assist the continent’s crypto adoption growth. Amid the plethora of events, projects, and partnerships, a rising trend in Africa quickly became a widespread market: crypto payment systems.

This new feature soon inspired banks, online payment platforms, and other financial institutions to seek crypto partnerships. In recent news, the ongoing Visa-crypto partnerships have reached South Africa’s crypto ecosystem. South African crypto exchange, VLAR exchange, has partnered with Visa to extend its crypto payment system throughout the continent. This feat will set a new pace of digital asset adoption in Africa and inspire other global payment platforms to introduce more crypto partnerships.

VARL Exchange Joins the Visa-Crypto Partnerships

South Africa’s crypto ecosystem is among the best and pioneering environments for digital assets. It is among the four significant crypto ecosystems comprising the continent’s crypto environment. 

South Africa has become a beacon of change for the entire web3 community. The collaboration between its government and crypto traders represents how to mainstream digital assets. Among its most remarkable feats was the collaboration between the SARB and the Financial Sector Conduct Authority to launch a consultation paper on digital assets. This feat will eventually create Africa’s first legal framework, a feat not even Nigeria, Africa’s top crypto environment.

Also, Read Crypto partnerships forging the path to a successful web3 ecosystem.

These positive take-ups on cryptocurrency inspired many innovators to launch SA-based crypto exchanges. In addition, its environment has also piqued the interest of Visa, a global payment platform, to extend its crypto payment services in the region. In recent news, Visa and VALR are partnering to set up a new crypto payment system amid SA’s crypto ecosystem. According to the reports, Visa-crypto partnerships have significantly expanded as Visa aims to dominate the crypto payment space. 

The South African crypto exchange has stated its zeal with this Visa-crypto partnership as it continues to expand its services beyond the region. VALR Exchange has recently secured authorization to introduce its crypto services in Europe. In addition, VALR Exchange has continued to pursue more licenses in several vital markets like Dubai and Mauritius. Farzam Ehsani, CEO of VALR Exchange, expressed his enthusiasm for this latest milestone.

Given South Africa’s crypto ecosystems shifting towards a mainstream market, it has presented the perfect means to dominate it completely. He said, “Teaming up with a global leader like Visa, renowned for its vast experience and far-reaching influence in the payments sector, aligns seamlessly with VALR’s ambition to introduce cutting-edge products and services to our customers. This partnership is instrumental in our continued pursuit of providing top-tier technology and services to our global audience.“

Lineshree Moodley, GM of Visa South Africa, clarified that this new Visa-crypto partnership would eventually propel the adoption rate of crypto payment systems. The region has showcased a positive take to bridge the gap between crypto and fiat currency by providing crypto infrastructure.

She said, “Visa is excited to work with VALR to issue Visa credentials to VALR customers. With this partnership, we will work on innovative payment and card products that empower VALR customers to utilize the Visa network to make and receive payments globally. The use cases are vast, and we’re looking forward to the collaboration with VALR to provide customers with a unique value proposition.“

Visa-crypto partnerships pushing crypto-payment services.

To bridge the gap between digital assets and modern economic activities, we must find a way to present the ecosystem tangibly. This means bringing about the need for crypto infrastructure. This means advocating for crypto-based hardware like crypto-ATMs, crypto payment gateway, or crypto-debit/credit cards.

Doing so allows crypto traders to access and spend their earned cryptocurrency easily. This provides a sense of physicality towards an intangible concept. One of the critical reasons why Africa’s crypto ecosystem is significantly underutilizing its potential is the need for more awareness and tangibility of web3.

Providing the means to spend digital assets easily allows users to spread the concept of web3 without the need for campaigns and events. This methodology allowed payment platforms like Mpesa to dominate its market gap. Crypto payment systems can provide a way to quickly spend and store digital currency without fear of scams or hacks. By presenting tangible proof of its existence through payment, platform it essentially sells itself through its services.

Also, Read Why Cardano is investing in African Blockchain Solutions.

This very approach inspired the concept of Visa-Crypto partnerships. Digital currency has become a growing need among users. As a result, Visa was among the first global payment services to actively take an approach to promoting the crypto ecosystem.

Some well-known Visa-Crypto Partnerships are with Binance, Crypto, CoinBase, and BlockFi. 

For instance, in 2020, Binance formed a Visa-Crypto partnership to provide a Visa debit card for its clientele. This feat significantly increased the use of digital currency throughout the European Economic Area. There are over 90 Visa-Crypo partnerships, significantly highlighting the need for a better crypto payment gateway.

The industry has a valuation of $1.22 trillion, and amid this massive figure, less than 20% have access to crypto payment gateways. Another significant Visa-crypto partnership was with Coinbase. According to the announcement, Coinbase also launched a Visa debit card, allowing customers to use Bitcoin on any Visa-accepted franchise.

Among its lesser-known partnerships are Anchorage, Circle, and Wirex. These three companies aim to overhaul the adoption rate of crypto payment systems. Wirex signed a long-term global partnership with Visa to expand its Asia-Pacific and UK footprint.

This Visa-crypto partnership intended to create a crypto-linked Visa debit card in the US despite its harsh regulations. Anchorage collaborated with Visa to test a means for institutes to store and exchange digital assets via Visa’s infrastructure. Visa mentioned its intention to introduce blockchain-based infrastructure to overhaul its overall performance. 

Many Visa-crypto partnerships have significantly aided the franchise to expand beyond its current state. Circle partnered with Visa to avail USDC stablecoins within Visa’s vast market. The primary intent of this Visa-crypto partnership is to make international transactions more rapid and secure.

Wrapping Up

In 2022, South Africa’s crypto ecosystem made history after the FSCA officially recognized digital assets as financial products. Since then, many South African crypto Exchanges have emerged to take advantage of its growing franchise. VALR Exchange is among many competitors to dominate its regions.

Also, Read ZELF, an American Fintech steps into the limelight of Crypto.

Despite the recent crypt winter, its positive environment has brought many nations to take a positive outlook on digital assets. Since 2018, the South African Crypto exchange has gained widespread recognition for its extensive range of digital assets. Its competitive trading fees and user-friendly platform have aided in its journey towards extending its services. With this Visa-crypto partnership, VALR Exchange may eventually take over South Africa’s crypto ecosystem.

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• Source: https://web3africa.news/2023/10/28/news/visa-crypto-partnerships-growing-in-africas-ecosystem/