Tribal Credit, a crypto-focused payment and financing firm for startups providing advanced spend controls, has partnered with Visa to expand its financial tools offerings to small and medium-sized businesses in Latin America. The announcement made on Monday signifies the growing demand for blockchain-based payments instead of traditional ones.
The collaboration with the world’s biggest payment processor will allow Tribal to provide credit cards in local currencies or denominations across Latin America. It includes Brazil, Mexico, Argentina, Chile, Panama, Colombia, Uruguay, Peru, and the Dominican Republic. In addition, a representative of the company revealed that their priority is to enable this credit service in the states of Peru, Chile, and Colombia.
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Although Tribal came to this move for providing traditional finance solutions to small-sized businesses, it also allows big corporations to benefit from emerging blockchain technology and use cryptocurrencies to transfer funds. To bring cross-border payment service, Tribal partnered with Stellar Development Foundation and Latin American cryptocurrency exchange Bitso in December 2021. It uses Stellar’s USD stablecoin for that purpose.
Expressing the reason behind their continuous development of financial solutions, the company highlighted El Salvador Bitcoin Law and acceptance of crypto in several regimes.
Visa also expanded its boundaries in crypto-space and even developed a blockchain interoperability project to handle payments in digital currency adequately. The project, titled “Universal Payment Channel,” is striving to establish a blockchain interoperability feature with an aim to streamline digital currency over different chains.
In addition, the credit card firm has recently introduced a consulting service that will help merchants and banks to integrate their business model with cryptocurrencies.
It is worth noting that Visa has also entered NFTs space as it purchased a CryptoPunk worth $150,000 in August 2021.
Visa Describe NFTs as Promissing Medium
In the same month, when Visa purchased an NFT CryptoPunk 7610, a collection of 10,000 NFT coins, it titled NFTs as a “promising medium for fan engagement” in a whitepaper.
Visa’s publication of 23 August said nonfungible tokens are a significant innovation when the pandemic enslavements have limited the live sports events and other festivals in the world. The NFT space is growing at the right time, and the fans are also eager to join digital communities based on their favorite artists or sports players.
The ban on live professionals’ leagues due to corona has caused an estimated $18 million loss in revenue. Per Visa’s statement, the NFTs’ creation drives the “need to diversify revenue and focus on technology to reposition businesses for growth opportunities and to capture the attention of fans.”
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In addition, the report added that “NFTs appeal to collectors, fans, teams, leagues, and talent.” Therefore, the NFTs can mainly become a source for fans to engage with their stars, manage customer relationships, and have more revenue streams. The primary use cases of nonfungible tokens identified in the report are gaming, art, and collectibles.
Featured image from Pixabay and chart from TradingView.com