- VISA and the payment infrastructure provider Bridge, which specializes in stablecoins, are intensifying their cooperation and will bring stablecoin-compatible VISA cards onto the market.
- It is building on pilot projects for which Bridge has already provided the infrastructure. Now they are going one step further and want to use stablecoins to process regular card transactions.
The core of the process is this Use of stablecoins like USDC for settlement between issuing banks, merchants and VISA.
Nothing changes for cardholders. You pay as usual, while the transaction between the parties involved is processed in the background using a stablecoin.
Bridge provides the technical layer that connects different blockchains and automates processing. According to VISA, this is intended to reduce costs, shorten processing times and simplify international payments.
Particularly in regions with weak banking infrastructure, there is potential for faster, more reliable processes while at the same time saving costs.
Access for fintechs and banks
A central element of the expanded cooperation is the opening up to FinTechs and banks that want to set up their own card programs.
Bridge provides a modular infrastructure that includes both the issuance of cards and the management of stablecoin processing.
VISA takes over the integration into the existing dealer network. What this means for companies is that they can offer digital payments based on stablecoins without their own blockchain integration.
VISA ensures that all processes comply with applicable regulatory requirements, particularly with regard to money laundering prevention and proof of origin.
Importance for global payment transactions
Stablecoins are increasingly being used as a technical basis for international payments. For years, VISA has pursued the strategy of embedding digital assets into existing processes without making them more complicated for customers. Together with Bridge they now want to enter the mass market.
If the model works in the initially targeted hundred countries, it will lead to broader acceptance of dollar stablecoins and increase competition in international payment transactions.
The coming months will show whether and how quickly banks and fintechs will integrate the offer into their own products.
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