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Visa expands stablecoin settlement with Circle's USDC, piloting programs with Worldpay and Nuvei on the Solana blockchain.
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Visa's USDC settlement capability empowers Worldpay to internalize more treasury operations and diversify merchants' fund-receiving options.
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Earlier, Visa card transactions were time-consuming, but now they can efficiently transmit USDC over Ethereum to Visa's Circle-managed treasury.
Visa, a prominent global payment industry leader, has unveiled its latest endeavor to advance cross-border monetary transactions. The company is extending its proficiency in settling stablecoin transactions to the Solana blockchain while collaborating with esteemed merchant acquirers, namely Worldpay and Nuvei.
Through actively conducting pilot programs with issuers and acquirers, Visa has successfully facilitated the transfer of substantial sums of USDC (USD Coin) between its partnered entities over the Solana and Ethereum blockchain networks. In doing so, it has effectively executed the settlement of fiat-denominated payments duly authorized through VisaNet.
When consumers employ Visa cards to make purchases at any of the vast merchant establishments worldwide that accept Visa, they benefit from the nearly instantaneous authorization of their payments. However, what remains concealed from their view is the intricate process of transferring the funds used for their purchases between their bank (the issuer) and the bank of the merchant (the acquirer). At this precise juncture, Visa's treasury and settlement systems come into play, orchestrating the meticulous clearance, settlement, and transfer of funds amounting to billions in daily transactions. This ensures that the correct sum, denominated in the preferred currency, is received from the issuer and dispatched to the acquirer.
Cuy Sheffield, Head of Crypto at Visa, stated,
By leveraging stablecoins like USDC and global blockchain networks like Solana and Ethereum, we're helping to improve the speed of cross-border settlement and providing a modern option for our clients to easily send or receive funds from Visa's treasury.
[Source: Business Wire]
Visa will test the reception of blockchain funds from multiple issuer partners. This new settlement option will enable Visa to quickly transfer funds to acquirers like Worldpay and Nuvei, speeding up settlement times for their diverse global merchant clients. Visa now also uses its Circle account to manage USDC settlement payouts to Worldpay and Nuvei, who can then distribute these payments in USDC to their end merchants.
Nuvei CEO Philip Fayer emphasized the cutting-edge nature of stablecoins like USDC, highlighting their potential to facilitate the growth of online businesses worldwide.
Visa, a prominent leader in the digital payments sphere, facilitates transactions among consumers, merchants, financial institutions, and government entities spanning more than 200 countries and territories. The company's mission revolves around fostering connectivity worldwide via an innovative, user-friendly, dependable, and secure payment network. This endeavor aims to empower individuals, enterprises, and entire economies, promoting prosperity through inclusive economic participation and emphasizing universal access as a fundamental element of the future of financial transactions.