The technology behind non-fungible tokens (“NFTs”), which are designed to be digital representations of real-world objects, could be set to strengthen the speed of commerce and therefore serve an important catalyst for the entire payments ecosystem, said Cuy Sheffield, head of crypto at Visa (NYSE:V), at the 2022 Financial Technology Conference hosted by RBC Capital Markets.
“If NFTs as a technology can really start to increase the velocity of commerce, and bring more people across the world… we think that is a big opportunity for the entire payments ecosystem, and we think a lot of this is going to be driven and built by individual creators, which we kind of see as the next generation of small businesses,” Sheffield said.
Sheffield pointed out that Visa (V) cardholders, who typically use their card once per day, are more likely to make more payments for digital goods than physical goods.
Moreover, Visa (V) cardholders likely won’t use their card 10 or 20 times per day on physical goods, but “they’re probably going to be digital goods that they truly own and they take possession in, that give them utility that they can resell at some point in the future,” Sheffield explained.
When Visa (V) first set up its crypto product team during the 2018 crypto bear market, it since has been increasingly embracing the cryptosphere and, in particular, NFTs to further expand its payments network. Towards the end of March, the company launched an NFT program to help entrepreneurs grow their business through NFTs.
Previously, (January 28) Visa CEO Al Kelley said his company will continue to lean into the crypto space.