Visa Expands Cross-Border Transactions with USDC and the Solana Blockchain

By Lidia Yadlos

Visa, a global payments giant, has just made a major move in the world of digital finance. They're expanding their use of stablecoins (digital currencies tied to real-world assets) and teaming up with merchant service providers, Worldpay and Nuvei. Plus, they're utilizing the high-speed Solana blockchain for this endeavor.

Visa is at the forefront of digital currency and blockchain technology. They're determined to make money movement across borders faster and more efficient.

How Visa Uses Stablecoins

Visa has already conducted live tests with issuers (the banks that issue Visa cards) and acquirers (the banks that receive payments from Visa transactions). 

In these tests, Visa moved millions of USDC (a stablecoin) between its partners using the Solana and Ethereum blockchains to settle payments authorized over VisaNet.

When you use your Visa card to make a purchase anywhere in the world, it feels quick and seamless. But what you don't see is the complex process of moving money between your bank (the issuer) and the merchant's bank (the acquirer).

Visa's treasury and settlement systems manage this intricate operation, ensuring that the right amount in the preferred currency reaches its destination. This process happens flawlessly between nearly 15,000 financial institutions and across more than 25 currencies worldwide.

Cuy Sheffield, Visa's Head of Crypto, explained how, "Using stablecoins like USDC and global blockchains like Solana and Ethereum can speed up cross-border settlements. This makes it easier for clients to send or receive funds through Visa's treasury."

Building on the Crypto.com Pilot

Visa's journey into this digital realm began in 2021 when they started testing USDC in their treasury operations. This led to a successful pilot with Crypto.com, one of the first major payment networks to experiment with stablecoin settlements. 

This collaboration eliminates the days-long currency conversion and costly international wire transfers that were previously needed for cross-border transactions.

Visa is now extending its capabilities to acquirers like Worldpay and Nuvei. These global acquirers serve various merchants worldwide, including those in the blockchain and crypto industry, gaming, and NFT marketplaces. These businesses often prefer receiving stablecoins over traditional fiat currencies for card payments.

Visa can now manage settlement payouts in USDC to Worldpay and Nuvei, who can then pass these payments on to their merchants.

Support for the Solana Blockchain

Visa has recognized the need for newer, faster blockchains to handle stablecoin transactions efficiently. So, they're adding support for Solana, a high-performance blockchain. This move makes Visa one of the first major payment companies to directly use Solana for live settlement payments between clients. 

Solana boasts impressive speed, with 400-millisecond block times and the capacity for hundreds or even thousands of transactions per second.

Forging Ahead

Visa's journey into the world of digital finance doesn't stop here. They're actively seeking new partnerships and embracing the potential of digital currencies to shape the future of finance. Their collaboration with Worldpay and Nuvei is a significant step in this direction.

“Visa's USDC settlement capability enables Worldpay to bring more of our treasury operations in-house and allows us to offer merchants more choices for receiving funds,” said Jim Johnson, President of Worldpay Merchant Solutions, FIS. 

“Diversifying funding options and increasing flexibility is critical to serving the changing needs of global merchants in today’s rapidly evolving commerce landscape.”

Jim Johnson, President of Worldpay

“Stablecoins like USDC are cutting edge payments technology that can enable online businesses around the world to accelerate their growth,” said Philip Fayer, Chair and CEO, Nuvei.

“Optimizing cross-border transactions is only one use case where stablecoins can benefit businesses. As a leading global payments company, we are constantly focused on innovation, and we’re excited to work with Visa to bring these capabilities to our partners.”

By harnessing stablecoins, blockchain technology, and strategic partnerships, Visa is poised to revolutionize cross-border money movement, making it faster and more efficient than ever before.

Published on Solana

Visa Expands Cross-Border Transactions with USDC and the Solana Blockchain