One of the global payment companies, Visa, wants to initiate stablecoin payments to penetrate crypto. Visa’s stablecoin could be a game-changer for the crypto community.

Following Visa’s expansion of its stablecoin settlement capabilities on Tuesday, industry watchers believe the company’s work with USDC via Solana could spur greater acceptance in the broader crypto payments space.

According to a participant in the business, several of the biggest “cross-border e-commerce” players are becoming more interested in blockchain technology as they look to reduce the time and expenses of their payment procedures.

As part of pilot initiatives, Visa announced on Tuesday that it may now send USDC-denominated rewards to Worldpay and Nuvei over the Solana blockchain. These merchant-acquiring companies can then deliver these payments in USDC to their end merchants.

According to Andy Bromberg, the CEO of Beam digital wallet, there is a compounding effect from the rising use of stablecoins. He noted that it makes sense for acquirers like Worldpay and Nuvei to give USDC payouts to merchants now that they are receiving USDC.

As soon as retailers receive USDC payouts, Bromberg said to Blockworks, “it makes sense for them to offer to pay their vendors and employees in USDC.” “Even just one stablecoin payment at the top of the stack can trigger a compounding set of stablecoin payments further down, increasing stablecoins’ share of global payments.”

In an email to Blockworks, Cuy Sheffield, head of crypto at Visa, stated that the business intends to support more blockchains in the future.

To better serve his clients and business partners, he continued, “While we are starting with USDC, we may explore adding additional stablecoins to our settlement capabilities over time.”

New Businesses Have Begun to Get Involved

Visa's Stablecoin Could Be a Game-Changer

Ran Goldshtein, senior vice president of payments at cryptocurrency custody platform Fireblocks, stated during a Twitter Space on Tuesday that Visa’s most recent project is “a major milestone,” demonstrating that business-to-business money flow via cryptocurrency is currently a focus.

During the Twitter Space with Goldshtein, Nabil Manji, head of crypto and Web3 at Worldpay, stated that crypto-native businesses have been the first to lean into crypto payments.

He mentioned Airbnb and Uber as examples of businesses that could benefit most from blockchain rails. Worldpay is also in communication with major participants in the “cross-border e-commerce space,” for whom payments are a significant component of their company.

These businesses collect money from clients and pay hosts or drivers—among others—with it.

“While crypto payments aren’t something we’re focused on integrating into the platform shortly, we’re always looking at all aspects of payments for ways to improve our community’s experience with it, including developments in digital assets and their use cases,” an Airbnb spokesperson told Blockworks on Wednesday.

Further Information on Visa

Visa's Stablecoin Could Be a Game-Changer

CEO Dara Khosrowshahi stated in a 2022 interview with Bloomberg that the business would accept cryptocurrency as a payment option “at some point.”

“Those companies I mentioned, and dozens, if not hundreds, of others have massive payments departments and teams where the ability to get that money to those end recipients can be a differentiator for their platform,” Manji said. “How quickly they can do it and how cheaply they can do it is something they pride themselves on.”

Manji claimed that it is crucial to improve these processes given the variety of nations and currencies that some multinational corporations operate in, especially in the current “cost-of-capital environment.”

For instance, the spokesman stated that Airbnb operates in more than 220 countries and regions. In addition, it conducts roughly $80 billion in business annually in over 40 different currencies, and 90% of the hosts with the company like to be paid in their currencies.

According to Matt Long, general manager of the cryptocurrency trading platform FalconX, Visa’s use of the Solana blockchain in its most recent pilot programs may appeal to companies trying to reduce the time and cost associated with processing payments.

We believe Visa’s new attempt opens many opportunities for crypto asset holders and business owners. This serious development could satisfy both the global payment company and its customers.