VISA Embraces Blockchain and Solana in New Program
VISA has recently announced a pilot program that incorporates blockchain technology, specifically on the Solana network, to enhance payment processes. By acquiring merchants Worldpay and Nuvei, VISA aims to achieve “enterprise-grade” throughput and lower transaction costs.
The payment giant has already settled millions of dollars on blockchain networks using stablecoin USDC, according to the announcement. Cuy Sheffield, VISA’s Head of Crypto, believes that this development has the potential to improve legacy payment systems:
By leveraging stablecoins like USDC and global blockchain networks like Solana and Ethereum, we’re helping to improve the speed of cross-border settlement and providing a modern option for our clients to easily send or receive funds from Visa’s treasury. Visa is committed to being on the forefront of digital currency and blockchain innovation and leveraging these new technologies to help improve the way we move money.
VISA’s journey into blockchain began in 2021 when it partnered with Crypto.com and utilized the Ethereum blockchain for cross-border transactions in Australia. This initiative dramatically reduced settlement times from days to seconds.
The recent acquisitions of Worldpay and Nuvei are expected to further enhance settlement times, reduce costs, increase throughput, and decentralize the program. VISA’s program on the Solana blockchain makes it one of the first legacy companies to implement live settlement payments on this network. The company also expressed its readiness to form new partnerships and expand the program in the future.
According to Token Terminal data, Solana has faced challenges in the “Crypto Winter,” experiencing drops in circulating market cap, revenue, and its native token SOL. However, the blockchain still maintains positive annualized revenue and fees, and despite a decline in active users, overall trends suggest potential growth in these metrics.
Hot Take
VISA’s embrace of blockchain technology and its partnership with Solana demonstrates its commitment to innovation in the payment industry. By leveraging stablecoins and blockchain networks, VISA aims to improve the speed and efficiency of cross-border settlements, benefiting both clients and merchants. While Solana has faced challenges in recent times, its potential for growth and its ability to support VISA’s program make it a promising choice. This collaboration sets an example for other legacy companies to explore the possibilities of blockchain technology and embrace the opportunities it presents for transforming traditional payment systems.
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