<img src="https://crypto.news/app/uploads/2024/01/crypto-news-Visa-Transak-to-provide-crypto-to-fiat-withdrawals03.webp” />
Two payments giants are collaborating to address one of cryptocurrencies' pain points with respect to mass adoption: exchanging digital assets for fiat currencies.
On January 30, Transak and Visa announced a partnership to bridge the gap between the worlds of cryptocurrency and traditional finance by offering direct cryptocurrency withdrawals to cards in over 145 countries.
Visa is a global leader in digital payments, while Transak specializes in building payments infrastructure for cryptocurrencies and NFTs. Together, the two noted that on-ramps that allow users to exchange fiat currencies like the US dollar for cryptocurrencies like bitcoin (btc) have attracted more attention than off-ramps that allow participants to withdraw their digital assets.
In a statement, the companies said that this situation often leaves users unable to exit cryptocurrency markets or incentivizes withdrawal methods that may be contrary to local regulations.
Yanilsa González-Ore, director of Visa Direct and Global Ecosystem Readiness for North America, highlighted that real-time payments through a secure regulated channel solve this.
By enabling real-time card withdrawals through Visa Direct, Transak offers a faster, simpler and more connected experience for its users, making it easier to convert crypto balances into fiat, which can be spent in the 130+ millions of business locations where visa is accepted.
Yanilsa González-Oré, Head of Visa Direct, North America Division
Transaction Co-founder and CEO Sami Start added that his company's support for more than 40 cryptocurrencies translates into many options for crypto-to-fiat conversions. Transak also has a presence on more than 350 web3 wallets and defi platforms, such as MetaMask and Decentraland.
The partnership comes as cryptocurrency ownership has grown by leaps and bounds over the past year. As reported by crypto.news, global cryptocurrency usage increased by 34% in 2023, with bitcoin and ethereum (eth) recorded as the main catalysts behind the rise to 580 million users worldwide.