Visa Inc. (NYSE: V), a global leader in payments, has announced the expansion of its stablecoin settlement capabilities to merchant acquirers Worldpay and Nuvei, leveraging Circle’s USDC and the Solana blockchain. This initiative builds on successful issuer pilots and aims to modernize cross-border money movement.
Key Highlights of Visa’s Stablecoin Settlement Expansion
Pilot Programs with Acquirers:
- Worldpay and Nuvei join as pilot partners to test USDC settlements for merchant payouts.
- Focus on speeding up cross-border transactions and reducing reliance on traditional wire transfers.
Multi-Blockchain Support:
- Adds Solana to existing Ethereum blockchain integration for faster, lower-cost transactions.
- Solana’s high performance (400 TPS average, 2K TPS peaks) enhances scalability.
Use Cases for Merchants:
- Targets crypto-native businesses (e.g., NFT marketplaces, on-ramp providers) preferring stablecoin payouts.
- Enables acquirers to route USDC directly to merchants, bypassing fiat conversions.
How Visa’s Stablecoin Settlement Works
Visa’s treasury systems facilitate the movement of funds between issuers and acquirers. Here’s the enhanced process with USDC:
Consumer Purchase:
- A card transaction is authorized via VisaNet in near-real time.
Settlement:
- Issuers send USDC over Solana/Ethereum to Visa’s Circle-managed account.
- Visa forwards USDC to acquirers (e.g., Worldpay), who distribute funds to merchants.
Benefits:
- Eliminates multi-day currency conversions and costly wire transfers.
- Supports 25+ fiat currencies across 15K financial institutions.
"By leveraging stablecoins like USDC and global blockchain networks, we’re improving cross-border settlement speed and offering clients a modern alternative for fund movement."
— Visa Head of Crypto
Case Study: Crypto.com Pilot Success
- 2011 Pilot:
Visa tested USDC for issuer-side settlements with Crypto.com, reducing settlement times from days to seconds. Results:
- Crypto.com now uses USDC to settle obligations in Australia, with plans for global rollout.
- Saved costs associated with international wire transfers.
👉 Discover how Visa’s blockchain solutions are transforming payments
FAQ Section
Q1: Why is Visa using stablecoins like USDC?
A1: USDC offers faster, cheaper cross-border settlements compared to traditional banking rails.
Q2: Which blockchains support Visa’s stablecoin settlements?
A2: Ethereum and Solana, with potential for future blockchain integrations.
Q3: How do merchants benefit from USDC payouts?
A3: Crypto-native businesses receive funds directly in stablecoins, avoiding fiat conversion delays.
Future Outlook
Visa continues to forge partnerships in the digital currency space, emphasizing innovation in payments. Collaborations with Worldpay and Nuvei signal a shift toward blockchain-enabled treasury operations.
👉 Explore Visa’s latest digital currency initiatives
For more details, visit Visa’s official website.