Visa is revolutionizing cross-border payments by extending its stablecoin settlement capabilities to the Solana blockchain, partnering with global merchant acquirers Worldpay and Nuvei. This strategic move aims to enhance transaction speed, reduce costs, and modernize global fund transfers.
Key Developments in Visa’s Stablecoin Strategy
1. Solana and Ethereum Integration
- Visa is conducting live pilots using USDC (USD Coin) on both Solana and Ethereum blockchains to settle fiat-denominated payments via VisaNet.
- Millions of USDC have already been transferred between partners, streamlining cross-border settlements.
2. Behind-the-Scenes Efficiency
- While Visa card transactions appear instantaneous, backend processes involve complex treasury operations across 15,000 financial institutions and 25+ currencies.
- Stablecoins like USDC and blockchain networks reduce settlement friction, ensuring faster fund delivery to acquirers.
3. Expansion to Acquirers
- Visa now supports Worldpay and Nuvei, enabling merchants to receive settlements in USDC.
Target merchants include crypto platforms, gaming services, and NFT marketplaces, benefiting from:
- Faster payouts via Circle-managed USDC accounts.
- Elimination of traditional currency conversion delays.
Why Solana?
- Performance: Solana’s high throughput (50,000+ TPS) and low fees make it ideal for scalable stablecoin transactions.
- Cost-Effectiveness: Compared to Ethereum, Solana reduces transaction costs by over 90%, enhancing merchant profitability.
Industry Perspectives
- Cuy Sheffield (Visa’s Head of Crypto):
"Blockchain networks and stablecoins are critical to modernizing cross-border settlements, offering clients unprecedented speed and flexibility." Worldpay & Nuvei:
- Jim Johnson (Worldpay): "USDC settlements empower merchants in a dynamic commerce ecosystem."
- Philip Fayer (Nuvei): "Stablecoins optimize cross-border transactions, reducing operational overhead."
👉 Explore how blockchain is transforming global payments
FAQs
Q: How does Visa’s stablecoin settlement work?
A: Visa uses USDC on Solana/Ethereum to move funds between issuers and acquirers, bypassing traditional banking rails for faster settlements.
Q: Which merchants benefit from USDC payouts?
A: Crypto platforms, gaming services, and NFT marketplaces gain from instant, low-cost transactions without currency conversion.
Q: Why did Visa choose Solana?
A: Solana’s speed and low fees make it a superior choice for high-volume stablecoin transactions compared to older blockchains.
Q: Will Visa support more stablecoins?
A: While USDC is currently prioritized, Visa remains open to integrating other regulated stablecoins in the future.
Future Outlook
Visa continues to pioneer digital currency adoption, with plans to:
- Expand USDC settlements to additional markets.
- Foster new blockchain partnerships to drive payment innovation.