Visa Collaborates with Worldpay and Nuvei to Enhance Cross-Border Payment Efficiency
Visa, the world’s leading payment giant, has partnered with payment processors Worldpay and Nuvei to launch pilot programs aimed at improving cross-border payment efficiency. The primary focus of these programs is to expand stablecoin settlement capabilities, specifically using USDC and integrating with the Solana blockchain. This exciting development was announced through a press release on BusinessWire.
Stablecoin Settlement Expansion
In these live pilots, Visa’s treasury and settlement systems have successfully facilitated seamless fund transfers between issuing and acquiring banks. This intricate process efficiently connects over 15,000 financial institutions across 25 different currencies worldwide. As a result, Visa consumers can enjoy almost instant payment authorizations at millions of merchant locations around the globe.
Visa’s decision to integrate the Solana network stems from its reputation as a high-performing blockchain that enables fast and cost-effective payments. By embracing Solana, Visa has become one of the pioneering payment leaders to incorporate this technology into their live settlement payments.
The Solana blockchain is renowned for its exceptional efficiency, with a block processing time of just 400 milliseconds. It boasts an average transaction throughput of 400 transactions per second (TPS) and can handle over 2,000 TPS during periods of increased demand.
Cuy Sheffield, Visa’s Head of Crypto, emphasizes the role of stablecoins like USDC and blockchain networks like Solana and Ethereum in revolutionizing cross-border settlement and modernizing fund transfer solutions. Visa is fully committed to embracing these technologies to transform the movement of money.
Expanding Stablecoin Adoption among Payment Leaders
Cross-border transactions are often costly and time-consuming due to currency conversion and the involvement of multiple intermediaries. Stablecoins offer a more efficient solution by reducing costs and delays associated with transferring funds between countries. This explains why payment giants are increasingly embracing stablecoins.
PayPal, a global digital payment leader, introduced its own stablecoin, PayPal USD (PYUSD), in August. Through a partnership with Paxos, PayPal’s stablecoin is accessible to US customers via the PayPal app. Coinbase recently added support for PYUSD under an “experimental label.”
In July 2021, Mastercard and Circle announced a strategic collaboration to explore the use of USDC for settlement in a pilot program. The aim of this pilot is to test USDC’s viability as a means for card issuers to settle payments with Mastercard more easily, ultimately driving greater adoption of internet-native financial infrastructure.
As stablecoins continue to gain momentum, more people will not only use them but may also explore other blockchain assets, further expanding the possibilities of digital payments.
Hot Take
The collaboration between Visa, Worldpay, and Nuvei to enhance cross-border payment efficiency through stablecoin settlement expansion is a significant step towards revolutionizing the global financial landscape. By leveraging the capabilities of blockchain networks like Solana and Ethereum, Visa is paving the way for faster, more cost-effective, and transparent payment solutions. This development showcases the increasing adoption and acceptance of stablecoins as a viable alternative to traditional currencies. As more payment giants embrace stablecoins and blockchain technology, the future of cross-border transactions and international payments looks promising, with the potential for increased efficiency, reduced costs, and enhanced accessibility for businesses and individuals worldwide.
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