You Can Now Withdraw Crypto Directly to a Visa Debit Card & Avoid Using A CEX. Here Is How!

Summary

Withdrawing crypto into fiat currencies like the British pound, dollar, or euro has been challenging due to infrastructure and regulatory issues. However, Visa announced a partnership with web3 payment provider Transac, enabling cryptocurrency withdrawals directly to Visa debit cards through the Visa Direct solution. This partnership supports over 40 cryptocurrencies and allows users to withdraw crypto directly to Visa debit cards, avoiding centralized exchanges. Despite some security concerns, this move bridges the gap between traditional finance and the crypto industry, promoting mainstream use of cryptocurrencies. Visa and MasterCard are investing heavily in cryptocurrency infrastructure and offerings.

Takeaways

• 💳 Withdrawing crypto into fiat currencies such as the British pound, dollar, or Euro has been challenging due to lack of infrastructure, increased regulation, and banks refusing transactions from crypto and centralized exchanges.
• 🤝 Visa has formed a partnership with the Web3 payment infrastructure provider Transak, which was set up in 2019 by CEO Sammy Start.
• 🌍 Transak provides on-ramp and off-ramp integration with crypto wallets and platforms across 170 cryptocurrencies on more than 75 blockchains.
• 💸 Transak raised $20 million in 2023 to fund its global expansion and is a registered company with FinCEN in the US and the FCA in the UK, and also registered in Poland, India, and the UAE.
• 🛠️ The partnership between Visa and Transak will allow cryptocurrency withdrawals directly to a Visa debit card through the Visa Direct solution, available through over 800 apps.
• 👜 Users can connect wallets like Metamask, Trust Wallet, and Ledger to withdraw crypto directly to a Visa debit card, usable in millions of locations globally.
• 🔒 KYC will be required, and Transak will manage this process. The partnership currently supports more than 40 cryptocurrencies.
• 📉 Some people have raised possible security concerns and risks, but there are few criticisms at this early stage.
• 🌉 This partnership is seen as bridging the gap between the traditional financial system and the cryptocurrency industry, enabling more mainstream use of cryptocurrencies.
• 📈 Visa is actively expanding its crypto integration, partnering with companies like Circle, Crypto.com, KuCoin, and BitPanda, and supporting projects involving stablecoins and CBDCs.

Q & A

What is the main challenge for people trying to withdraw crypto into fiat currencies?

The main challenges include a lack of infrastructure, increased regulation, and banks refusing to accept transactions from crypto and centralized exchanges.

What significant news did Visa announce on January 30, 2024?

Visa announced a partnership with the web 3 payment infrastructure provider called Transact, which facilitates crypto withdrawals directly to a Visa debit card.

Who is Transact and what does it offer according to its website?

Transact is a company established in 2019 by CEO Sammy Start, offering on-ramp and off-ramp integration with crypto wallets and platforms across 170 cryptocurrencies on more than 75 blockchains.

How much funding did Transact raise in 2023 to support its global expansion?

Transact raised $20 million in 2023.

Which regulatory bodies is Transact registered with in the US and the UK?

Transact is registered with FinCEN in the US and the FCA in the UK.

How does the partnership between Visa and Transact benefit crypto users?

The partnership allows cryptocurrency withdrawals directly to a Visa debit card through the Visa Direct solution, enabling users to connect to wallets like MetaMask, Trust Wallet, Ledger, etc., and withdraw crypto to use in millions of locations where Visa is accepted globally.

What is the difference between the number of cryptocurrencies supported by Transact and the number supported by the partnership with Visa?

While Transact claims to offer support for 170 cryptocurrencies, the partnership with Visa currently supports more than 40 cryptocurrencies.

What are some of the security concerns and risks highlighted by users regarding the new service?

Users have highlighted potential security concerns and the risk of increasing centralization in the cryptocurrency industry as a result of this service.

How does this partnership contribute to the mainstream use of cryptocurrencies?

The partnership bridges the gap between the traditional financial system and the cryptocurrency industry, allowing for more mainstream use of cryptocurrencies by facilitating easier conversion into fiat currencies.

What other steps has Visa taken to integrate and offer cryptocurrencies?

Visa has partnered with Circle in 2020, supported the USDC stablecoin on some crypto cards, offered USDC payment support to Solana in September 2023, and works with more than 70 crypto platforms including crypto.com, KuCoin, and Bitpanda.

What is MasterCard's stance on partnering with crypto wallets and exploring opportunities in the crypto space?

MasterCard is also exploring opportunities to partner with crypto wallets and is involved in trials for CBDCs in different countries, indicating that they are investing heavily in cryptocurrency infrastructure and offerings.