On January 30th, the collaboration between Transak and Visa was announced, marking a significant step forward in addressing a major challenge in the widespread adoption of cryptocurrencies: the conversion of digital assets into traditional fiat currencies. Visa, a global leader in digital payments, has teamed up with Transak, a company renowned for developing crypto and NFT payment infrastructures, to facilitate direct crypto-to-card withdrawals in over 145 countries.
This partnership is focused on bridging the gap between cryptocurrency markets and conventional financial systems. It highlights the need for efficient and regulated pathways to convert digital currencies like Bitcoin (BTC) into fiat currencies such as the U.S. dollar. While the industry has seen a surge in on-ramps that enable users to buy crypto with fiat, the options for off-ramps, allowing users to convert and withdraw their digital assets, have been comparatively limited.
The collaboration aims to address issues faced by crypto users who often find it difficult to exit the market or are forced to use withdrawal methods that might not align with local regulations. Yanilsa Gonzalez-Ore, the North America Head of Visa Direct and Global Ecosystem Readiness, emphasized the importance of real-time, secure payments through regulated channels in solving these challenges.
With the integration of Visa Direct, Transak is enhancing its service by providing a faster, more straightforward, and interconnected experience. This allows users to easily convert their crypto balances to fiat, which can be used at over 130 million merchant locations globally that accept Visa.
Sami Start, the co-founder and CEO of Transak, highlighted the company’s support for over 40 different cryptocurrencies, offering a wide range of options for crypto-to-fiat conversions. Transak’s services are also integrated with more than 350 web3 wallets and DeFi platforms, including MetaMask and Decentraland.
The significance of this partnership is underscored by the remarkable growth in crypto ownership. A report by crypto.news in 2023 revealed a 34% increase in global crypto usage, with Bitcoin and Ethereum (ETH) playing key roles in driving the user base to 580 million people worldwide. This collaboration between Visa and Transak represents a pivotal moment in the ongoing integration of cryptocurrencies into the mainstream financial ecosystem.