Since the start of 2021, Visa and Mastercard have announced several partnerships with crypto firms to help users purchase crypto seamlessly. Specifically, Visa has partnered with over 70 crypto firms, serving 80 million merchants globally.
However, the recent market collapse that pushed many crypto firms, including FTX and BlockFi, into bankruptcy has forced the payment giants to rethink their crypto partnerships.
Sources close to Visa and Mastercard confirmed to Reuters on Feb. 28 that the payment giants will push back on inking new partnerships with crypto firms.
In addition, the payment companies will suspend the launch of crypto-related services until market conditions and the regulatory environment improve.
According to a Visa spokesperson, the recent crypto collapse indicates that crypto has a long way to become a part of the mainstream payment system. However, Visa will not change its positive stance and strategy on crypto.
A spokesperson for Mastercard told Reuters:
“Our efforts continue to focus on the underlying blockchain technology and how that can be applied to help address current pain points and build more efficient systems.
The spokesperson added that they would continue to explore more use cases of blockchain while awaiting a clear regulatory framework to forge new partnerships with crypto firms.