Visa's increasing expansion in 2025: the role of digital tokenization and collaborations in the crypto sector.
Cryptocurrency and Visa: Q1 2025 Trends
Get ready for a ride through the digital payments landscape, as Visa shakes things up in Q1 2025. According to Broker Finance, Visa's dominance in the market continues to thrive, driven by the incorporation of cryptocurrency solutions and tokenization.
The growth factors behind Visa's success:
- Tokenization surge: Driven by tokenized payments that observed a 7% increase, reaching 13.7 billion transactions in Q1 2025. Nearly half of Visa's e-commerce transactions were tokenized.
- Cryptocurrency solutions integration: An increase in payment volumes by 6% in the US, 9% on international markets, and a whopping 13% in cross-border transactions (excluding intra-European operations) was a result of these integral changes.
Two significant collaborations were announced this quarter:
- A partnership with Baanx, focusing on USDC payments targeting the B2B segment.
- A collaboration with Bridge, enabling the issuance of cryptocurrency cards in Latin America and making it possible to pay with crypto in 12 million retail locations.
By the end of 2025, experts predict that cryptocurrency transactions will account for 5% of Visa's entire transaction volume.
Visa's Crypto Journey: Oksana Kuznetsova
While Visa is harnessing the power of cryptocurrencies, it's essential to understand the crypto-related transaction's exact share within Visa's overall volume remains a mystery. Despite this, the stage is set for intriguing developments:
1. Stablecoin Adoption
Visa is betting on stablecoins to expand crypto utility with initiatives such as its Latin America pilot that allows users to spend stablecoins at Visa-accepting merchants. Although this may not contribute directly to Visa's core payment volume metrics, it's a crucial step towards merchant adoption.
2. Traditional Payment Volume
Visa's Q2 2025 financial results show steady growth:- Net revenue: $9.6 billion, up 9% YoY- Global payments volume: Year-on-Year growth of 8% in constant dollars- 2025 full-year revenue guidance: $39.53 billion (10.4% YoY growth)
With cryptocurrency-related transactions growing through Visa's infrastructure, they currently make up a non-material or undisclosed portion of total volume as reported based on the available data. Keep an eye out for future earnings calls for specific crypto-related metrics.
- The integration of cryptocurrency solutions and tokenization is strengthening Visa's dominance in the digital payments market, as shown by the 7% increase in tokenized payments and the 6% rise in payment volumes in the US.
- In Q1 2025, Visa announced collaborations with Baanx and Bridge, which are anticipated to boost the use of USDC payments in the B2B sector and enable cryptocurrency card issuance in Latin America, respectively.
- By the end of 2025, experts suggest that cryptocurrency transactions will account for 5% of Visa's total transaction volume, signifying a significant shift in the digital payments landscape.
- Although the share of cryptocurrency-related transactions within Visa's overall volume remains unclear, the company's focus on stablecoin adoption and partnerships with companies like Baanx and Bridge point toward an increasing role for cryptocurrencies in Visa's business.
