Global payments giant Visa (NYSE: V) has certified CryptoSpend, a start-up created by two University of Technology classmates, to issue a physical debit card to facilitate crypto payments.
Visa put the duo through a rigorous procedure to guarantee the privacy and security of users’ information, as well as compliance with anti-money laundering regulations, the Australian Financial Review reported on Wednesday.
Later this week, it is expected to declare its approval; and the Australian company can begin to roll out debit cards to its consumers, who may then pay at retail establishments and hospitality venues with Bitcoin (BTC) and other compatible cryptocurrencies.
Users of CryptoSpend’s app can make direct purchases instead of converting crypto to fiat, like some other apps on the market do.
Growing adoption among payment giants
It will be the first time customers may use cryptocurrencies on an Australian payments card as part of an international card scheme’s network, underscoring Visa and Mastercard’s (NYSE: MA) global efforts to facilitate spending BTC and other digital currencies for daily purchases.
Both Visa and Mastercard are working to make it easier for customers to spend cryptocurrency at millions of businesses across the world that are connected to their networks. At the moment, PayPal (NASDAQ: PYPL) allows users to change Bitcoin into fiat currencies at checkouts to make purchases in the United States.
CryptoSpend co-founder Andrew Grech told CoinDesk that the card would provide Australians with another “flexible way” to spend their cryptocurrency on daily things.
Novatti, an ASX-listed company, will issue the card, which is anticipated to hit the market in September. BitGo, a New York-licensed custodian, is in charge of the crypto assets. Users will also have the facility to spend other cryptocurrencies such as XRP, Bitcoin Cash, and Ethereum (ETH) with the card on top of withdrawing funds and paying bills.
In essence, the action reflects Australia’s economic market’s rising interest in cryptocurrencies. In March, Hong Kong-based Crypto.com became a significant member of Visa Australia, allowing the company to directly provide its version of a crypto Visa card in the country.
Crypto.com has been licensed as a direct issuer of Visa debit cards in Australia, and the company plans to introduce a card soon. BTC.com.au allows customers to spend cryptocurrency funds using an EFTPOS card, but it does not have its own wallet.
In the first half of 2021, Visa reported that more than $1 billion had been spent on crypto-linked Visa cards.