Payments giants Visa and Mastercard have suspended their planned partnerships with crypto firms following the crisis in the crypto industry.
According to the information provided to Reuters by sources knowledgeable on the subject, Mastercard and Visa pressed the brakes for crypto partnerships after the problems in the crypto markets shook the faith in the sector.
Regulatory Uncertainties Raise Concern
The crypto industry reversed dramatically in 2022, as the bankruptcies of industry-leading companies like FTX and BlockFi shook investors and increased regulatory scrutiny over the industry.
A spokesperson for Visa, the world’s largest payment processor, said: “Recent crypto industry woes remind us that we still have a long way to go before crypto becomes a part of mainstream payments and financial services.” used the phrases. However, the spokesperson added that this does not change the company’s crypto strategy and focus.
Over the past few years, major payments companies have increased interest in crypto as the asset class has grown in popularity. However, many companies have announced multiple partnerships with crypto firms and set up dedicated teams to explore blockchain technology.
Mastercard teamed up with crypto lending platform Nexo in April to launch what it calls the world’s first crypto-backed payment card.
Payments giant Visa also terminated its global credit card deals with FTX in November, just one month after announcing an expanded partnership with the exchange.
Card company American Express said in 2021 that it would consider using crypto as a possible option to redeem reward points in the future. However, a source familiar with the matter said that he does not see crypto tokens as a strategic priority in the near term.
Thomas Hayes, chairman and managing member of investment firm Great Hill Capital: “They cannot and should not move forward until there is a clear regulatory framework. Delays are due to core business areas as this area remains strong. “This relates to an uncertain regulatory environment for crypto and reduced demand for crypto services in the near term.”
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