Visa reported its fiscal third-quarter earnings result, and cryptocurrency purchases boosted its cross-border volumes significantly during that period
Payments giant Visa has revealed that cryptocurrency purchases significantly increased its cross-border volumes during its third fiscal quarter. Visa's executives discussed the surge in volumes during their earnings call with investors.
Vasant Prabhu, Visa's CFO, stated that "Cross-border card-not-present volume, excluding travel, continued to be very strong, up 56% from 2019, improving 12 points from the second quarter, with cryptocurrency purchases representing most of that acceleration. We have seen more active cards and more spend per card in cryptocurrency purchases."
According to the CFO, the spike in volume occurred in April and May, when Bitcoin raced to a new all-time high and Ether also set a record trading price. However, the CFO noted that the activities had dropped dramatically in recent months, coinciding with the decline in the prices of most cryptocurrencies.
He explained, "So essentially, most of the time cryptocurrency impacts our business is when purchases go up. A lot of the people who buy crypto are buying them from entities that are non-US based, often based in Europe. So these end up being cross-border transactions when they buy cryptocurrencies like Bitcoin."
The CFO further added that when there is a spike in buying activity, it is reflected in the company's cross-border e-commerce numbers. The number of people buying cryptocurrencies during a bull cycle is far higher than during the bearish season. This is evidenced by the recent drop in trading volume on cryptocurrency exchanges.
The cryptocurrency market has been in a bearish cycle since May, with prices falling by roughly 50%. However, Bitcoin and the rest of the market are slowly recovering, with BTC hovering around the $40k point in recent days.