Visa has teamed with WireX to promote the use of digital currencies in Europe and the UK.
“This collaboration will explore new opportunities to leverage and integrate innovative Visa cards and reduce friction in payment experiences,” the companies said in a news release Monday (July 15).
“By combining the strengths of both companies, consumers will have the trust and confidence of Visa’s payment network with Wirex’s product innovation.”
The partnership includes the debut of Wirex Pay, a “modular Zero Knowledge (ZK)” payment chain incubated by Wirex, designed to simplify both traditional and cryptocurrency transactions, part of a broader project by Wirex and Visa to develop projects that integrate blockchain technology with traditional financial systems.
“At a time when the financial world is boldly moving towards Web3 and decentralization, the need for robust solutions for global funds movement remains essential,” said Sviatoslav Garal, Wirex’s global head of payments.
“Key ecosystem players like Visa play a tremendous role in this shift. Wirex, a renowned innovator in both Web3 and traditional finance, is thrilled to partner with Visa in bridging the gap between these two spaces.”
The partnership comes at a time when crypto is — as noted here last week — “by all appearances, trying to do better.”
The European Union’s (EU) landmark Markets in Crypto-Assets Act (MiCA) framework has gone into effect, and Web3 firms are already complying, leading industry observers to believe that digital assets are on their way to an era of mainstream growth and adoption.
“But there is still a perception among some businesses and consumers that cryptocurrencies are primarily associated with illegal activities and speculation,” PYMNTS wrote. “This negative perception can be a barrier to broader acceptance.”
Although blockchain technology is secure, the wider ecosystem has been bedeviled by hacks, scams and thefts, undermining confidence and putting up an extra layer of risk for businesses weighing cryptocurrency acceptance.
At the same time, the regulatory environment for cryptocurrencies continues to evolve, with countries adopting different regulations, if not banning the digital assets altogether.
“This creates uncertainty and risk for businesses considering adoption,” PYMNTS wrote.
Elsewhere in the Web3 space, PYMNTS last week examined the possibility of cryptocurrencies, particularly stablecoins, as a digital alternative to instant payment systems. Proponents say stablecoins offer the potential for lower transaction costs, because they leverage blockchain technology to facilitate cross-border payments without the need for intermediaries.
“However, the efficiency of stablecoins is contingent upon the underlying blockchain infrastructure, which can vary in terms of transaction speed and scalability,” that report said.