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Global payments processor Visa has introduced support for USD Coin (USDC) transactions settled on the Solana blockchain as its stablecoin offerings continue to grow.
Visa announced that it is conducting live and completed pilots with issuers and acquirers, transferring millions of USDC among partners across the Ethereum and Solana blockchains to facilitate fiat-based payments.
A statement from the payments company details the progression of Visa’s adoption of USDC, starting from pilots with Crypto.com to collaborations with merchant payment processors Worldpay and Nuvei.
The incorporation of USDC issued on Ethereum and Solana into Visa’s framework allows the former to utilize Visa’s treasury and settlement systems, bridging traditional finance with Web3. Cuy Sheffield, Visa’s head of crypto, noted that utilizing stablecoins like USDC and blockchains such as Ethereum and Solana enhances the efficiency of cross-border settlements.
1/ We are excited to announce that Visa has expanded our stablecoin settlement capabilities to merchant acquirers launching pilots with @Worldpay_Global and @Nuvei utilizing the Solana blockchain https://t.co/E0TjMO5xiH
— Cuy Sheffield (@cuysheffield) September 5, 2023
Visa began its exploration of USDC in 2021 in partnership with Crypto.com to assess stablecoin settlement on the issuance side. This pilot utilized Ethereum-based USDC to receive payments from Crypto.com for cross-border transactions related to its Australian card program.
Settlements for cross-border purchases made with Crypto.com Visa cards previously involved lengthy currency conversion processes and incurred wire transfer fees. Consequently, the crypto exchange now employs USDC for settlement responsibilities for its Australian Visa card.
Related: Visa investigates crypto gas fee payments through cards
Crypto.com also utilizes a Visa treasury-managed account with USD Coin issuer Circle to transfer USDC internationally on the Ethereum blockchain, which reportedly simplifies and shortens the process of international wire transfers.
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Circle co-founder and CEO Jeremy Allaire stated that the collaboration signifies a significant blockchain innovation that could transform payments and commerce:
“Circle built USDC to provide a functional digital dollar that could move at the speed of the internet to facilitate secure, reliable payments.”
The integration of USDC further enables Visa to send funds to USDC acquirers, including Worldpay and Nuvei, which is anticipated to reduce settlement durations for merchants utilizing their services.
The payment processors can then direct USDC payments to the merchants they support, linking Visa’s traditional fiat ecosystem to stablecoins and the broader cryptocurrency landscape they serve.
Worldpay merchant solutions president Jim Johnson remarked that Visa’s USDC settlement capability would allow it to provide merchants with more options for receiving funds and enhance its treasury management.
In a previous discussion with Cointelegraph during Money20/20 in Amsterdam in June 2023, Nabil Manji, Worldpay’s head of crypto and Web3, explained how the firm collaborated with Coinbase in 2013 to enable the exchange to be the first to accept fiat-based card payments globally.
Reflecting on the recent advancements, Manji indicated that Visa’s new USDC settlement service is a preliminary step in enabling Worldpay’s clients to achieve quicker, more cost-effective settlement of consumer payments.
“It opens the door to exploring future enhancements such as 24/7/365 settlement availability and real-time or multiple daily settlements, all of which can help to accelerate cross-border commerce.”
As Cointelegraph previously reported, Visa has started investigating a solution for off-chain gas fee settlements for Ethereum using a Paymaster smart contract. These smart contracts can facilitate payments for users and execute logic for various transaction functionalities.
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