Visa Launching Stablecoin Payments on Solana
VISA expands stablecoin settlement services to Solana blockchain, aiming to improve efficiency of legacy payment systems. Pilot program in live testing phase.
VISA has expanded its stablecoin settlement services to the Solana blockchain. This is a part of VISA's strategy to incorporate blockchain technology into its existing payment systems. The pilot program is designed to take advantage of Solana's high throughput and low transaction costs to improve the efficiency of VISA's legacy payment systems.
The Pilot Program
VISA's pilot program on Solana aims to offer "enterprise-grade" throughput and low transaction costs. The payment giant has collaborated with merchant payment processors Worldpay and Nuvei to make this possible. According to VISA's Head of Crypto, Cuy Sheffield, the integration of stablecoins like USDC and global blockchain networks like Solana and Ethereum is expected to enhance the speed 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 blockchainhttps://t.co/E0TjMO5xiH — Cuy Sheffield (@cuysheffield) September 5, 2023
The program is not just a theoretical exercise; it is already in the live testing phase. VISA has been conducting live and completed pilots with issuers and acquirers, moving millions of USDC tokens between partners across the Ethereum and Solana blockchains to settle fiat-based payments. This is a big step in the evolution of VISA's adoption of USDC, which has evolved from initial pilots involving Crypto.com to integrations with merchant payment processors like Worldpay and Nuvei.
USDC (USD Coin) has become a cornerstone in VISA's blockchain strategy. Issued on both Ethereum and Solana, this stablecoin enables VISA to create a bridge between traditional finance and Web3 technologies. VISA initiated its USDC tests in 2021 in collaboration with Crypto.com. The focus was on using Ethereum-based USDC to receive payments from Crypto.com for cross-border volume on its Australian card program. This has led to a reduction in the time and complexity involved in international wire transfers, as Crypto.com now uses USDC for settling its Australian VISA card obligations.
The integration of USDC also allows VISA to send funds to USDC acquirers like Worldpay and Nuvei. This is expected to speed up settlement times for merchants using their services, thereby connecting VISA's traditional fiat ecosystem to stablecoins.
The integration of USDC into VISA's payment ecosystem is expected to have a transformative impact on merchants. Worldpay's President, Jim Johnson, mentioned that VISA's USDC settlement capability would allow Worldpay to bring more of its treasury operations in-house. This will also enable them to offer merchants a wider range of options for receiving funds.
Nabil Manji, Worldpay's head of crypto and web3, has commented that VISA's new USDC settlement service is the first step in allowing Worldpay's clients to access faster, more cost-efficient settlement of consumer payments. This opens the door for future enhancements such as 24/7/365 settlement availability and real-time or multiple daily settlements, which can accelerate cross-border commerce.
Solana has been chosen for its high throughput and low transaction costs, attributes that make it an ideal choice for VISA's stablecoin settlement program. Despite recent market fluctuations, Solana maintains a 20% gain on its annualized revenue and fees. The blockchain's overall trends are positive, making it a promising partner for VISA's future blockchain endeavors.
