"Move Over, Visa"...Virtual Asset Payments Soar by 500%, Putting Financial Sector 'On High Alert'

▲ Mastercard·Visa, Bitcoin/ChatGPT generated image

As virtual assets rapidly emerge as a real-world payment method, the global volume of virtual asset card payments has surged by over 500% compared to previous levels.

According to the cryptocurrency specialized media BeInCrypto on May 1 (local time), card usage by major companies providing virtual asset payment services has grown by 500% in the past year. Data analysis from virtual asset payment service providers BitPay and Nexo shows 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 consumer 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 at stores without a separate exchange process. Virtual asset cashback benefits offered during payments 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. Usage frequency has significantly increased year-on-year in small payment scenarios such as coffee shops and grocery stores. Virtual asset payments are also becoming preferred for large expenditures such as travel and flight bookings. Users are realizing the real value of their assets by utilizing virtual assets held in their wallets in the real economy in real-time.

Major financial institutions highly value the scalability of the virtual asset payment market and are rushing to launch related products. The entry of institutional investors and regulatory adjustments have become driving forces accelerating the popularization of virtual asset cards. With the expansion of payment infrastructure, virtual assets are settling in as a universal payment method, beyond just an investment tool. The number of active users and wallet creation metrics within the ecosystem also support this growth trend.

The growth of the virtual asset payment market signifies that digital assets have established themselves as a core pillar of mainstream finance. Advances in security technology and improvements in payment processing speed are expected to further enhance the 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.

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