Visa, the global payment giant, is taking another stride in its cryptocurrency experiments. This time, it aims to expand the stablecoin settlement arena by utilizing the USDC dollar stablecoin and the Solana blockchain for pilot programs with merchant buyers like Worldpay and Nuvei.
A Well-Established Collaboration with Ethereum
The global payment company is already collaborating with the top two blockchain platforms, Ethereum, for faster payment settlements through VisaNet. The system offered by Visa assists in clearing, settling, and transferring transactions worth billions of USD on a daily basis between users’ banks and merchants’ banks. All of this happens seamlessly in the background for cardholders.
According to Cuy Sheffield, Visa’s Chief Crypto Officer, Visa’s use of Solana and Ethereum blockchains along with stablecoins like USDC will expedite cross-border payments and enable users to seamlessly send and receive funds through card facilities. Essentially, Solana and Ethereum blockchains, combined with USDC, will enhance international money transfer methods.
Visa’s Crypto Journey with Crypto.com
The ongoing pilot programs stem from Visa’s pilot program initiated with Crypto.com exchange in 2021. Visa used USDC stablecoin to see if it could improve settlements on the issuing side.
This is when the payment company partnered with the Ethereum blockchain for card-based payments in Australia. Prior to this pilot program, cross-border purchases made with Crypto.com cards, co-branded with Visa, took days to process, and international transfers were costly.
Adding Solana and Expanding to Buyers
Now, Visa has expanded its pilot program, adding not only Solana but also buyer entities such as Worldpay and Nuvei to shorten settlement times for merchants.
For this new phase of the program, the company required a new blockchain partner, in addition to Ethereum, to facilitate USDC payment transactions between merchants and buyers. Thus, they chose Solana, becoming the first major payment company to leverage Solana’s tools to streamline payments.
A Leap Forward in Cryptocurrency Integration
Visa’s move to integrate with Solana and further expand its crypto initiatives showcases its commitment to staying at the forefront of financial innovation. The introduction of USDC and the use of Solana’s efficient blockchain infrastructure not only simplifies cross-border transactions but also underscores Visa’s dedication to providing faster, cost-effective, and secure payment solutions.
Solana’s Scalability and Speed
Solana, known for its scalability and speed, offers an ideal environment for Visa to explore cryptocurrency payments further. With Solana’s high throughput and low transaction fees, Visa can process transactions faster and more efficiently, which is essential for international payments.
A Win-Win for Merchants and Consumers
The integration of Solana and USDC into Visa’s payment ecosystem is a win-win for both merchants and consumers. Merchants will experience shorter settlement times, reducing financial uncertainty and improving cash flow. Consumers, on the other hand, will enjoy the benefits of faster and cheaper cross-border transactions.
Visa’s Ongoing Commitment to Cryptocurrency
Visa’s ongoing commitment to cryptocurrency experimentation and integration underscores the growing significance of digital assets in the financial world. As cryptocurrencies continue to gain traction, Visa’s proactive approach positions it as a leader in adapting to the changing landscape of finance.
Join Visa on the Crypto Frontier
In a world where the boundaries between traditional finance and cryptocurrency are becoming increasingly blurred, Visa stands as a pioneer, bridging the gap between the two. Its dedication to enhancing cross-border payments, simplifying transactions, and leveraging innovative blockchain technology sets the stage for a future where cryptocurrency becomes an integral part of everyday financial transactions. Join Visa on this exciting journey into the future of finance.
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