Visa Direct has recently announced its partnership with Transak, a leading Web3 payments infrastructure provider. This collaboration will allow users in over 145 countries to easily convert their cryptocurrency holdings into local fiat currencies. This is a significant milestone for Transak, as it will provide a seamless and secure way for customers to exit the crypto market.
Unlike traditional platforms and gateways that are optimized for fiat-to-crypto conversions, Transak recognizes the need for a reliable and efficient method for the reverse process. Many customers struggle to cash out their crypto holdings due to regulatory hurdles and limited options. Transak’s partnership with Visa Direct will solve this issue by enabling real-time card withdrawals, allowing for faster and more convenient conversion of crypto into fiat.
Yanilsa Gonzalez-Ore, North America head of Visa Direct and Global Ecosystem Readiness, believes that this partnership will greatly benefit Transak’s users. By utilizing Visa Direct’s services, Transak can deliver a more connected experience, making it easier for customers to spend their fiat at the millions of merchant locations that accept Visa.
Transak’s payment and onboarding services handle know-your-customer (KYC) requirements, risk monitoring, and compliance for its customers. The company recently raised $20 million in a Series A round, solidifying its position as a leader in the industry.
Despite a turbulent year for the crypto market, industry experts believe that blockchain technology and cryptocurrencies still have the potential to revolutionize financial inclusion for marginalized and unbanked individuals. Ajay Rajani, vice president of expansion and crypto at Tala, recognizes the importance of identity in financial networks and how blockchain technology can break down barriers for participation.
Compared to traditional banking systems that often have strict requirements, blockchain-based assets allow for greater accessibility and inclusivity. This not only enables marginalized populations to bridge the identity gap but also opens up new possibilities for safer and more efficient digital transactions.
In addition to replacing current fiat transactions, blockchain technology also enables entirely new classes of transactions to occur, with lower transaction costs. This presents a great opportunity for the future of finance and the potential for a more inclusive and connected global economy.