- Visa opens new innovation studio in Kenya
- Latest move adds onto Visa’s efforts in the crypto and blockchain space
Visa has just announced its latest innovation studio in Kenya, which will utilize the emerging innovative payment options. These options include the cutting-edge smarter payment solution that leverages blockchain, internet-of-things, virtual reality and biometrics.
The payment giant will explore this option alongside others, such as tap-to-phone and pay-on-delivery.
Visa felt the threat of the new payment platform and digital wallets that could outdo card networks or slow down revenue growth. After realizing a niche in converting fiat currency into digital payments in areas like paychecks, insurance, disbursements and remittance, the company ventured into blockchain payment solutions.
“The amount of cash conversion beyond consumer payments is 10 times larger in other categories,” Vasant Prabhu, the vice chairman and chief financial officer for Visa Inc. opines.
Transactions carried out via cash could be slowed down by the increasing use of tap-to-pay debit in the US. Crypto and stable coins create revenue opportunities for Visa.
Latest Innovation Studio in Kenya to Serve Region
In April 2022, the digital payment provider opened its latest innovation studio in Nairobi, Kenya, East Africa, and described this arena as its first dedicated innovation venue in sub-Saharan Africa.
The arena aims to serve the sub-Saharan African area and to work hand in hand with a network of innovation centres that have been operating under Visa since 2016 in cities like Singapore, Dubai and San Francisco.
Aida Diarra, the senior vice president and head of Visa in sub-Saharan Africa says that “Sub-Saharan Africa is a fast-growing region with a tech-savvy population. As we continue to grow digital payments adoption in the region, our aspiration is to deepen our collaboration with clients and partners in developing solutions that are designed around the unique needs of Africa.”
Visa is Eyeing the Crypto Space
To facilitate transactions, Visa formed collaborations with crypto exchange platforms such as Coinbase global (COIN).
Visa users can now use crypto to fund a card payment. For instance, after crypto is sold and transferred to cash automatically.
Visa aims to form partnerships with diverse wallet providers and will develop a native digital currency settlement for each card network.
“What we can do is to be the bridge between the crypto economy and the world economy,” says Prabhu.
Visa also plans to form crypto deposit accounts with banks. Prabhu opines banks realized they may lose deposits as their customers are transferring money out of Banks into crypto platforms.
Recently Visa reported its users made crypto-linked card payments of up to $2.5 billion in its fiscal first quarter of 2022. This accounts for about 70% of the company’s crypto volume for all of fiscal 2021.
