In a collaboration with payment processors such as Worldpay and Nuvei, Visa aims to improve payment efficiency using stablecoins. This initiative is focused on the adoption of USDC and the integration of Solana, initially shared on BusinessWire. enhance cross-border The press release indicates that Visa has effectively utilized both Solana and Ethereum networks to transfer millions of USDC, allowing nearly instant conversion of fiat payments managed through VisaNet.
Through these pilots, Visa has ensured its treasury and payment systems work seamlessly, resulting in efficient money transfers between bank issuers and acquirers. This network connects almost 15,000 banks across 25 different currencies globally, providing Visa users with quick payment authorizations at millions of retailers worldwide.
Stablecoin Settlement Expansion
Visa described the integration of Solana as a strategic move, citing its high-speed, cost-effective nature. By incorporating Solana, Visa is among the first prominent payment firms to use it for real-time settlement transactions.
Solana distinguishes itself with remarkable efficiency, processing blocks in just 400 milliseconds and averaging 400 transactions per second. On demand, this network can exceed 2,000 TPS across various applications.
Cuy Sheffield, leading Visa's Crypto division, highlights the importance of stablecoins like USDC and blockchains like Solana and Ethereum for expediting international settlements, transforming how funds are transferred. Visa strives to leverage these technologies to modernize financial transactions.
Visa's exploration into blockchain began with employing USDC in its financial operations, leading to a collaboration with Crypto.com. This positioned Visa as a pioneer among major payment networks to trial stablecoin settlements, using USDC on the Ethereum network to simplify and cut costs of cross-border payments.
Visa's initiative also involves acquirers like Worldpay and Nuvei, aiding global merchants, especially in blockchain and cryptocurrency sectors. These acquirers can now settle payments using USDC through Visa’s Circle account, streamlining the process for their merchants.
Worldpay Merchant Solutions President Jim Johnson acknowledges that Visa’s USDC capability helps bring treasury operations under local control, offering merchants more options for receiving payments.
Nuvei’s Chair and CEO, Philip Fayer, pointed out that beyond settlement, stablecoins like USDC are crucial for business expansion, potentially revolutionizing international payment methods.
Stablecoin Recognition Grows Among Financial Pioneers
International transactions often incur significant costs and delays due to currency conversion and multiple parties. Stablecoins can alleviate these issues, boosting their adoption among major payment entities.
In August, PayPal, another digital payment innovator, rolled out PayPal USD (PYUSD) developed with Paxos. It’s available to U.S. customers via the PayPal app, and Coinbase has recently included PYUSD under an exploratory label.
July 2021 saw Mastercard and Circle commence a partnership aimed at piloting USDC for transactional settlements. This effort seeks to advance efforts towards using digital-native financial infrastructure with increased frequency.
The use of stablecoins is expected to widen, spurring interest in other blockchain-based assets.
Nicholas Say, originating from Ann Arbor, Michigan, has lived in diverse regions, including Uruguay, and resides in the Far East today. His works feature extensively online, focusing on progressive development and tech advances.
