Alchemy Pay Readies Launch of Virtual Crypto-Linked Cards
Payment method to be accepted by millions of merchants across Visa and Mastercard networks
John Tan, CEO of Alchemy Pay
- The cards support 40 cryptocurrencies and can be linked to digital wallets such as Google Play and PayPal
- Thirty percent of people say ability to pay with crypto would make them spend more than they would when using traditional payment methods, survey finds
Alchemy Pay has become the latest company working to accelerate the adoption of cryptocurrencies in the payment sector by getting set to launch virtual cards supporting more than 40 cryptocurrencies.
The cards can be linked to digital wallets such as Google Play and PayPal and will be accepted across millions of merchants on the networks of Visa and Mastercard, which includes Amazon and eBay.
Alchemy Pay, a Singapore-based crypto-fiat hybrid payment solutions provider, currently operates in 18 countries and regions, reaching about 2 million merchants through partnerships with Shopify, Arcadier, QFPay and others.
Alchemy is looking to offer the card services as a “full suite white-label service” to crypto projects and businesses as well as institutions looking to integrate crypto-related solutions, according to a news release put out by the firm on Monday.
Its virtual card services are being beta tested in several markets, the firm said, and they are expected to be launched at the end of 2021 or the beginning of 2022.
Alchemy Pay did not immediately respond to Blockworks’ request for comment.
The pending launch announcement comes after a survey by PYMNTS and BitPay found that 60% of cryptocurrency users are “very or extremely interested” in using crypto to make online purchases. The report measured the responses of about 8,000 crypto owners and non-owners in the US.
The 60% figure increases to 69% for those who have already made purchases with crypto and decreases to 49% among holders who have not.
“Holders and non-holders are interested in cryptocurrency payments because of the possible enhanced privacy and security features over traditional credit card or bank account-based payments,” the report states.
But consumer concerns about ease of use is a potential barrier, the survey found. Nine percent of non-holders believe that making purchases using cryptocurrency would be easy, whereas 55% of owners who have already made purchases with it say it was.
Additionally, more than half of those who don’t own crypto agree that not enough merchants accept cryptocurrency for payments. Another 30% agree that the ability to use crypto as a form of payment would make them spend more than they would when using traditional methods, such as credit cards.
Visa reported last month that consumers spent more than $1 billion worth of cryptocurrency on goods and services through Visa’s crypto-linked cards in the first half of 2021. The company also revealed that it is partnering with 50 crypto platforms on card programs that allow users to convert and spend digital currency at 70 million merchants.
Mastercard has also recently progressed in the crypto space by focusing on enabling partners to offer a card option to people wanting to spend their digital assets anywhere Mastercard is accepted.
Spokespeople for Mastercard and Visa did not immediately respond to requests for further comment on Alchemy Pay’s use of their networks.
The latest Alchemy Pay announcement is its latest in a string of expansion moves.
It partnered with Binance to help the world’s largest crypto exchange build a payment bridge between crypto and fiat through the Binance Pay wallet. Alchemy also joined forces with secure wallet and crypto custody services provider Cobo to allow it to hybrid crypto-fiat payment convenience to its platform.
Additionally, cryptocurrency service provider MEXC Global revealed last week that it would integrate Alchemy’s payment gateway to better serve MEXC’s European market.