Visa recently made headlines by filing two US patents related to digital wallets, non-fungible tokens, and the Metaverse.
It may come as a surprise to some, but it is not uncommon for large payment companies to file patent applications in these areas. American Express recently made a similar move.
Emmanuel DanielFounder of The Asian Banker, explained why Visa made the move and the challenges the company faces going forward.
“I’m curious as to why there is so much interest. visa Get into the business of crypto exchanges and crypto wallets. There are around 500, maybe 600 cryptocurrency exchanges around the world. Visa has good relationships with at least about 80 of them. In fact, Visa played a very important role at a time when regulators did not allow users to link their traditional fiat bank accounts to their cryptocurrency accounts.
I believe it is now declining as more regulators around the world allow this, allowing users to link their traditional bank accounts to their crypto accounts. I believe Visa thinks its brand provides a sense of security. crypto exchange I have a problem like them.
Visa’s real problem lies in its traditional credit card processing business. Honestly, it’s an expensive, slow business and the margins are incredibly declining. Visa will do well by using some of the pioneering developments being made in crypto and applying it to transforming traditional businesses. ”