Visa Europe is vigorously developing blockchain digital payments, but it will not use Bitcoin

Bitcoin enthusiasts firmly believe that digital payments are the future. Although bank card payments are becoming more and more common every day, this payment method as a way of transferring value has a high fraud rate. Shahar Fridman, head of digitalization and innovation for Visa Europe, believes that the development of digital payments should be paid attention to, even by Visa.

Consumers around the world are increasingly demanding different types of financial services. The payment industry is facing an unprecedented acceleration of evolution. In order to keep up with these demands, digitalization seems to be the only way forward.

Visa Europe is keen on blockchain technology

For some reason, many financial institutions are slow to adapt to these new challenges and changes. Visa Europe has seen a growth in mobile and contactless payment methods, as these payments reached $3 billion in the past 12 months. Visa wants to be at the center of the future mobile ecosystem, which means they will focus on new technologies and payment options.

It is interesting to see Visa Europe acknowledge that digital payments are the logical evolution of value transfer. Contactless payment methods are the first iteration of new payment types, followed by mobile and cloud-based solutions. At the same time, it is difficult to provide adequate security solutions for these new payment methods.

The transition from traditional payment methods to mobile payments is indeed a challenge, even for Visa Europe. The institution has a particular interest in blockchain technology, similar to many banks that are also keen on distributed ledgers. However, Visa Europe will not use an open blockchain, such as Bitcoin's blockchain, but a private permissioned blockchain solution. It is no surprise that they are more interested in blockchain than Bitcoin.

Shahar Fridman

Friedman also has an opinion on cryptocurrencies, which are often referred to as direct competitors to traditional payments. Visa Europe is not particularly concerned with Bitcoin and other altcoins, but they do appreciate the underlying technology that supports these cryptocurrency protocols. Visa Europe will closely monitor the development of the cryptocurrency field as they have always placed a high priority on innovation.