"Visa, Step Aside"...Virtual Asset Payments Soar 500%, Financial Sector on High Alert

▲ Mastercard·Visa, Bitcoin/ChatGPT generated image

As virtual assets rapidly emerge as a real-world payment method, global virtual asset card payments have surged by over 500% compared to before.

According to BeInCrypto, a cryptocurrency-specialized media outlet, on May 1 (local time), card usage by major companies providing virtual asset payment services grew by 500% in the past year. Data analysis from virtual asset payment service providers BitPay and Nexo showed a simultaneous increase in both the number of transactions and the total payment amount. Major assets, including Bitcoin (BTC) and Ethereum (ETH), are actively being used in daily consumption activities.

The main reason for the surge in payments is the integration of virtual asset networks by major card companies Visa and Mastercard. Users can now instantly use virtual assets for payments in stores without a separate exchange process. Virtual asset cashback benefits offered during payment are also a strong factor attracting users. In particular, the proportion of payments using stablecoins like USDT and USDC, which have low price volatility, has significantly increased.

Virtual asset cards complement the limitations of existing financial systems and enhance payment convenience. Their frequency of use in small payment scenarios, such as coffee shops and grocery stores, has significantly increased compared to the previous year. Virtual asset payments are also becoming preferred for large expenditures like travel and airline ticket bookings. Users are experiencing the real value of their assets by utilizing virtual assets held in their wallets in the real economy in real-time.

Major financial institutions are highly evaluating the scalability of the virtual asset payment market and are rushing to launch related products. The entry of institutional investors into the market and regulatory improvements have become driving forces accelerating the popularization of virtual asset cards. Due to the expansion of payment infrastructure, virtual assets are establishing themselves as a universal payment method beyond just an an investment tool. Active user counts and wallet creation metrics within the ecosystem also support this growth.

The growth of the virtual asset payment market signifies that digital assets have become a core axis of mainstream finance. Advances in security technology and improvements in payment processing speed are expected to further enhance user experience. The combination of global payment networks and virtual assets is leading to increased efficiency in financial transactions worldwide. The consumer culture utilizing virtual assets is expected to become even more robust in the future.

*Disclaimer: This article is for investment reference only, and we are not responsible for investment losses based on it. The content should be interpreted for informational purposes only.*