VISA Advances Blockchain-Based Payments with USDC
Global payment leader VISA has announced a significant expansion of its stablecoin settlement capabilities. On September 5th, VISA revealed through Businesswire that it's partnering with merchant acquirers Worldpay and Nuvei to enhance USDC-based settlement across blockchain networks, building upon its successful Crypto.com debit/prepaid card pilot.
Key developments:
- Multi-million dollar USDC transfers already processed between partners
- Transactions enabled on both Ethereum and Solana networks
- Pilot demonstrates 24/7 cross-border settlement capabilities
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The Mechanics Behind VISA's Innovation
When consumers use VISA cards worldwide, they experience instant payment convenience. Behind the scenes:
- Traditional System: Funds move between deposit banks (issuers) and merchant banks (acquirers)
- VISA's Infrastructure: Handles billions daily across 15,000+ financial institutions
- New Blockchain Layer: Adds USDC settlement option while maintaining existing fcurrency rails
Cuy Sheffield, VISA's Crypto Lead, explains: "By leveraging stablecoins like USDC and global blockchain networks, we're enhancing cross-border settlement while providing clients modern options to move funds."
From Pilot to Expansion
VISA's stablecoin journey includes:
| Year | Milestone | Partner | Benefit |
|---|---|---|---|
| 2021 | Initial USDC testing | Crypto.com | First major payment network to test stablecoin settlement |
| 2023 | Solana integration | Worldpay/Nuvei | Added high-performance blockchain option |
"The combination of USDC and VISA's network shows tremendous potential for payments' future," says Circle CEO Jeremy Allaire.
Merchant Benefits and Industry Impact
Key advantages for businesses:
- Faster settlements: Reduces traditional multi-day processes
- Cost efficiency: Lower transaction fees vs international wires
- Flexibility: Option to receive stablecoin payments
Worldpay's Jim Johnson notes: "Diversified settlement options are crucial in today's dynamic commerce landscape."
FAQs: Understanding VISA's Stablecoin Move
Q: Which stablecoin is VISA using?
A: VISA is exclusively using USDC (USD Coin) for these settlements.
Q: How does this benefit merchants?
A: Businesses gain faster access to funds and optionality in payment acceptance.
Q: Which blockchains support these transactions?
A: Currently Ethereum and Solana, with potential for additional networks.
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The Road Ahead
Future developments may include:
- Expansion to more acquiring partners
- Additional supported currencies
- Further blockchain network integrations
As Philip Fayer of Nuvei states: "Stablecoins represent cutting-edge payment technology that can accelerate global business growth."
Industry Impact:
This initiative positions VISA at the forefront of payment innovation while maintaining compliance with global financial regulations.