Credit card giant Visa says that one Ethereum (ETH) competitor has unique technological advantages over other blockchains as a payments platform. In a new company blog post, the financial services titan says that smart contract platform Solana (SOL) has distinctive features that set it apart from its rivals, such as low and predictable transfer fees, […]
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The Visa executive in charge of the payments giant’s crypto department says the company is looking at a future where it has several types of blockchain technology under its scope. Visa just expanded its stablecoin settlement capabilities to the Solana (SOL) blockchain, launching a new cross-border money system using Circle’s USDC. In a new blog […]
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Visa has announced that its expanding its stablecoin settlement capabilities with a new system based on the Solana (SOL) network. In a new press release, Visa says that after a successful pilot involving digital asset exchange Crypto.com, it’s launching a new cross-border money system using Circle’s USDC on Solana. Visa says that through the pilots, […]
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The global payments firm has expanded its stablecoin settlement capability to include USDC tokens issued on the Solana blockchain.
Global payments processor Visa has rolled out support for USD Coin (USDC) payments settled on the Solana blockchain as its stablecoin offering begins to expand.
Visa revealed that it is carrying out live and completed pilots with issuers and acquirers, moving millions of USDC tokens between partners across the Etheruem and Solana blockchains to settle fiat-based payments.
An announcement from the payments firm outlined the evolution of VISA’s adoption of USDC through pilots involving Crypto.com to integrations with merchant payment processors Worldpay and Nuvei.
The integration of USDC issued on Ethereum and Solana into Visa’s ecosystem means that the former can leverage Visa’s treasury and settlement systems to bridge traditional finance with Web3. Visa’s head of crypto Cuy Sheffield added that tapping into stablecoins USDC and blockchains like Ethereum and Solana help improve the speed of cross-border settlement.
1/ We are excited to announce that Visa has expanded our stablecoin settlement capabilities to merchant acquirers launching pilots with @Worldpay_Global and @Nuvei utilizing the Solana blockchainhttps://t.co/E0TjMO5xiH
— Cuy Sheffield (@cuysheffield) September 5, 2023
Visa began testing USDC in 2021 in collaboration with Crypto.com to test stablecoin settlement on the issuance side. The resulting pilot leveraged Ethereum-based USDC to receive payments from Crypto.com for cross-border volume on its Australian card program.
Settlements for cross-border purchases made on Crypto.com Visa cards had previously required multiple day currency conversion processes and accrued wire transfer fees. As a result the crypto exchange now uses USDC for settlement obligations for its Australian Visa card.
Related: Visa explores crypto gas fees payments through cards
Crypto.com also uses a Visa treasury-managed account with USD Coin issuer Circle to send USDC across border on the Ethereum blockchain which reportedly reduces the length and complexity of international wire transfers.
Circle co-founder and CEO Jeremy Allaire said that the partnership marks a fundamental blockchain innovation that could alter payments and commerce:
“Circle built USDC to provide a functional digital dollar that could move at the speed of the internet to facilitate secure, reliable payments.”
The integration of USDC also allows Visa to send funds to USDC acquirers including Worldpay and Nuvei, which is expected to increase settlement times for merchants using their services.
The payment processors are then able to route USDC payments to merchants they serve, connecting Visa’s traditional fiat ecosystem through to stablecoins and the wider cryptocurrency space that they serve.
Worldpay merchant solutions president Jim Johnson said that the Visa’s USDC settlement capability would enable it to offer merchants more choices for receiving funds and better manage its treasury operations.
In prior conversation with Cointelegraph during Money20/20 in Amsterdam in June 2023, Nabil Manji, Worldpay head of crypto and web3, outlined how the firm had partnered with Coinbase back in 2013 to allow the exchange to become the first to accept fiat-based card payments worldwide.
Commenting on the latest developments, Manji said Visa’s new USDC settlement service is the first step in allowing Worldpay’s clients to access faster, more cost-efficient settlement of consumer payments.
"It opens the door to exploring future enhancements such as 24/7/365 settlement availability and real-time or multiple daily settlements, all of which can help to accelerate cross-border commerce."
As Cointelegraph previously reported, Visa has begun exploring a solution to make off-chain gas fee settlements for Ethereum using a Paymaster smart contract. These types of smart contracts are able to make payments for users and execute logic for various transaction capabilities.
Magazine: Deposit risk: What do crypto exchanges really do with your money?
Payments giant Visa is testing out a new system that would allow for the payment of Ethereum (ETH) gas fees with a credit or debit card. In a new post on Visa’s website, the firm’s researchers say that one of the biggest problems with utilizing the Ethereum network for payments is the need to settle […]
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Payments giant Visa is exploring the possibility of allowing users to pay transaction fees on the leading smart contract platform Ethereum (ETH) using a card. In a new company blog post, the credit card titan says that paying gas fees using a card may simplify the process of transacting over Ethereum. According to Visa, users […]
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Visa’s innovative solution employs Ethereum's ERC-4337 standard and the "paymaster" smart contract, enabling off-chain gas fee settlement.
In a potential transformative move for users, Visa, the payment solution provider, is testing an innovative solution enabling on-chain gas fees to be paid using a Visa card.
Mustafa Bedawala, a VISA product manager, presented the report, highlighting an observed challenge with cryptocurrency wallets; the ongoing requirement to oversee Ethereum (ETH) balances for covering gas fees.
The standard Ethereum procedure involves users acquiring ETH from an exchange or on-ramp service and then transferring it to their wallets to cater to variable gas fees. This continuous adjustment of gas prices frequently leads to users either overspending or having insufficient ETH, introducing intricacies and challenges.
Visa’s innovative solution employs Ethereum's ERC-4337 standard and the "paymaster" smart contract, enabling off-chain gas fee settlement. The process involves the user triggering an Ethereum transaction via wallet, sent to the paymaster.
The web service computes the gas fee and charges Visa using Cybersource. Subsequently, a digital signature is provided and momentarily validated, then attached by the wallet before being sent to Ethereum. Paymaster verifies the signature and covers the gas fee.
This sequence of steps allows the user to directly pay gas fees with their Visa card off-chain, eliminating the need for users to hold ETH merely for paying fees.
According to the publication, Visa has trialed this concept on the Ethereum Goerli testnet, utilizing available open-source tools like Stackup's userop.js library. The trial transactions effectively covered fees through the paymaster, bypassing the requirement for ETH.
Related: 3 reasons why Ether price is still pinned below $1,900
Notably, this concept has the potential to reduce friction for blockchain users and allows the user to directly pay gas fees with their Visa card off-chain, eliminating the need for users to hold ETH merely for paying fees.
The report also suggested wider ramifications, highlighting the potential for merchants or dApps to utilize the paymaster framework to improve customer interactions, facilitating gas fee payments using Visa cards. This innovation may also create opportunities for current wallet and paymaster providers to introduce options for Visa card-based gas fee payments.
Magazine: Deposit risk: What do crypto exchanges really do with your money?
The EU Cryptopay cards may stop working soon as the Bank of Lithuania has revoked the EMI license of the app’s provider, UAB PayrNet.
The European Union debit card provider for Cryptopay has lost its Electronic Money Institution (EMI) license, according to a June 22 email sent to its customers. The company recommends to EU cardholders that they should immediately spend or transfer funds from their cards. Funds held in the app’s accounts are safe, Cryptopay told Cointelegraph.
Cryptopay had been using UAB PayrNet, a licensed EMI in Lithuania, to provide its EU customers with debit card services. But PayrNet’s license was revoked by Lithuania’s central bank, leading to the risk that users’ funds may become temporarily stuck on their cards.
An email stated that only funds transferred to a user’s debit card would be affected. Otherwise, “this issue in no way influences your Cryptopay account which shall continue business as usual.”
As for funds that have already been transferred to a card, Cryptopay recommends that they be spent or transferred away “as soon as possible.” This can be done by using the card to buy crypto, withdrawing it as cash from an ATM, transferring it to a different card or simply spending the money at a store.
Cryptopay also clarified that even if a customer’s card stops working, the user can still recover the card’s funds from UAB PayrNet directly. Cryptopay offered to help coordinate this process if this becomes necessary.
Related: Binance Pay sees growing interest in Africa, Eurasia and Eastern Europe
In an email conversation with Cointelegraph, a Cryptopay representative clarified that the problem primarily affects users in the EU. However, users in the United Kingdom may be temporarily affected because the company has “switched off card services in order to maintain operational stability.” These services should be back up and running within “a couple of days” in the United Kingdom.
Cryptopay head of support Konstantin Gorin stated that the company has dealt with crises from the banking system in the past, and he believes the company is ready to tackle this present challenge:
“This October it’s ten years on the market for us, we’ve seen worse. We’ve already been through similar situations in the past (back in 2018 when MasterCard and VISA pulled a plug on almost every existing crypto card programme and back in 2020 when Wirecard scandal hit the market), we're confident that we’ll overcome this and keep on.
Gorin also claimed that the team is already working on a new debit program, stating, “First order of business to make sure our affected clients are taken care of, next — we’re already working on a new card programme solution for them and for us."
Debit card issuer Wirecard went bankrupt in June 2020. At the time, it had become one of the most used debit card providers for crypto companies, including Cryptopay. Cryptopay later relaunched its program with a different provider.
Despite continuing troubles in the crypto debit card industry, there are also signs that debit card companies are becoming more favorable to crypto. In March, Mastercard announced that it would integrate stablecoins into its payment network within the Asia-Pacific region, allowing them to be accepted in the region wherever Mastercard is.
Indonesia is introducing a new national payment system as the country furthers its de-dollarization efforts and protection against “possible geopolitical consequences.” The new payment system will replace Visa and Mastercard in state-owned institutions and companies, a top central bank official said. “We expect that very soon it will become widespread.” Indonesia Establishes New National Payment […]
The world’s largest crypto exchange, Binance, has lifted certain restrictions on Russian users, local crypto media unveiled. According to multiple reports, Russians can once again use their bank cards to make deposits and the trading platform has canceled a limit on their balances which was introduced in compliance with European sanctions. Russian Cards, Including Visa […]