Visa Expands Cross-Border Payment Pilots to Solana Blockchain

Visa is expanding its capability to settle transactions using stablecoins to Solana blockchain and is collaborating with merchant acquirers Worldpay and Nuvei.

Visa is actively exploring digital currency and blockchain innovation to enhance the efficiency of money transfers. In ongoing pilot programs with issuers and acquirers, Visa has facilitated the movement of millions of USDC between its partners using both the Solana and Ethereum blockchain networks to settle payments denominated in traditional fiat currencies, all while authorized through VisaNet.

When consumers use Visa cards to make purchases at any of the millions of merchants worldwide that accept Visa, they experience the convenience of nearly instant payment authorizations. However, behind the scenes, the funds used for these purchases need to traverse the banking systems of both the card issuer and the merchant's bank. Visa's treasury and settlement systems play a vital role in ensuring the seamless clearance, settlement, and transfer of vast sums in transactions each day, ensuring that the correct amount in the desired currency is transferred from the issuer to the acquirer.

By leveraging stablecoins like USDC and the global blockchain networks of Solana and Ethereum, Visa aims to expedite cross-border settlements and provide modern, user-friendly options for clients to send or receive funds from Visa's treasury.

This initiative builds upon Visa's successful pilot program with Crypto.com in 2021, where USDC was used in Visa's treasury operations. This pilot paved the way for Crypto.com to employ USDC and the Ethereum blockchain for settling payments related to their card program in Australia, eliminating the need for lengthy currency conversion processes and costly international wire transfers. This capability is now being extended to other markets.

In addition to receiving funds from issuer partners, Visa can now send funds to acquirers such as Worldpay and Nuvei through these new settlement options, significantly reducing settlement times for their merchants. Worldpay and Nuvei are global acquirers serving merchants across various sectors, including those involved in blockchain, cryptocurrency, gaming, NFT marketplaces, and others who prefer stablecoins over traditional fiat currencies for card payments.

Visa's decision to add support for the Solana blockchain network stems from the demand for faster and more cost-effective settlement options. Solana, known for its high performance, offers the ability to send and receive stablecoins swiftly.