This week, Visa announced a groundbreaking pilot program to streamline cross-border payments using USDC (USD Coin) stablecoin via the Solana blockchain. The initiative marks Visa's continued push into modernizing global financial infrastructure with blockchain technology.
How Visa's New Stablecoin Payment System Works
Currently, Visa facilitates near-instant card payments through a complex backend process involving:
- Funds movement between issuer and acquirer banks
- Currency conversion across 25+ currencies
- Daily clearing/settlement of billions through Visa's treasury systems
The new system enhances this by:
- Using USDC for settlement
- Leveraging Solana's high-speed blockchain
- Enabling direct treasury-to-merchant stablecoin transfers
"By leveraging stablecoins like USDC and global blockchain networks like Solana and Ethereum, we're helping to improve cross-border settlement speed," said Cuy Sheffield, Head of Crypto at Visa.
Visa's Crypto Payment Evolution
2021 | Began USDC treasury testing
2023 Q1 | Launched Crypto.com pilot (Ethereum)
2023 Q4 | Expanded to Solana with Worldpay/Nuvei
Key benefits observed:
- Reduced settlement time from days to minutes
- Eliminated costly wire transfers
- Enabled direct USDC acceptance for merchants
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Why Solana Was Chosen
Technical advantages driving Visa's decision:
- 400ms block times
- 400+ TPS (peaking at 2,000+)
- Low transaction costs
- Proven scalability for payments
Merchant Adoption and Future Outlook
Participating acquirers:
- Worldpay
- Nuvei
Merchant sectors benefiting:
- Crypto on-ramps
- NFT marketplaces
- Gaming platforms
- Blockchain businesses
"Stablecoins like USDC are cutting-edge payments technology that can accelerate global business growth," said Philip Fayer, Nuvei CEO.
Industry-Wide Crypto Payment Trends
| Payment Provider | Crypto Initiative |
|---|---|
| Mastercard | Multi Token Network |
| PayPal | PayPal USD stablecoin |
These developments confirm cryptocurrency's growing role in:
- Faster cross-border settlements
- Reduced payment friction
- Next-gen financial infrastructure
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FAQ: Visa's Crypto Payment Pilot
Q: How does USDC improve Visa's payment system?
A: It enables instant, low-cost cross-border transfers without traditional currency conversion delays.
Q: Why use blockchain instead of traditional systems?
A: Blockchain provides immutable settlement records, 24/7 operation, and eliminates intermediary banks.
Q: Which merchants can receive USDC payments?
A: Currently those partnered with Worldpay/Nuvei, with expected expansion to more acquirers.
Q: How does Solana compare to Ethereum for payments?
A: Solana offers faster speeds and lower costs, making it better suited for high-volume microtransactions.
Q: Is Visa moving away from fiat currencies?
A: No - this complements existing systems while offering digital currency options.
Q: When will this be available globally?
A: Visa is gradually expanding after successful pilots in Australia and other test markets.