Visa Expands to Solana for USDC Merchant Payments

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The global payments giant Visa is taking another bold step into the blockchain ecosystem by launching a pilot program to enable merchants to receive payments in USDC stablecoin via the Solana (SOL) blockchain. This move marks a significant evolution in how digital transactions could be processed in the future—faster, cheaper, and more efficient, especially across borders.

Announced in September 2023, this initiative builds on Visa’s existing stablecoin settlement trials on Ethereum and signals growing institutional confidence in blockchain-based payment infrastructure. By leveraging Solana’s high-speed, low-cost network, Visa aims to streamline cross-border settlements and offer modern financial tools to businesses worldwide.

Bridging Traditional Finance and Blockchain Innovation

Visa is collaborating with leading financial technology providers Worldpay and Nuvei to pilot this new USDC settlement capability on Solana. The program allows funds to flow from customers’ digital wallets into Visa’s treasury in the form of USDC, which is then automatically settled with merchants through established payment rails.

This integration brings enterprise-grade scalability to blockchain payments—processing transactions at near-zero cost and with finality in seconds. According to Cuy Sheffield, Head of Crypto at Visa:

“By leveraging stablecoins like USDC and global blockchain networks such as Solana and Ethereum, we’re helping improve the speed of cross-border settlements and providing a modern option for our clients to easily send or receive funds from Visa’s balance sheet.”

The pilot has already facilitated millions of dollars in test transactions, running parallel to Visa’s earlier USDC settlement work on Ethereum. This dual-chain approach demonstrates Visa’s commitment to interoperability and its strategy of testing multiple blockchain ecosystems before broader rollout.

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Why Solana? Speed, Scalability, and Cost Efficiency

Solana stands out among blockchains for its ability to process up to 65,000 transactions per second with average fees under $0.001. For a company like Visa, which handles billions of transactions annually, even marginal reductions in cost and latency can translate into massive operational efficiencies.

Unlike older blockchains that struggle with congestion and high gas fees during peak usage, Solana offers consistent performance—making it an ideal candidate for real-time payment settlement. Its proof-of-history (PoH) consensus mechanism enables rapid transaction finality, reducing settlement risk and improving cash flow predictability for merchants.

Moreover, Solana’s growing ecosystem of decentralized finance (DeFi) applications, stablecoin integrations, and institutional-grade tooling makes it a compelling partner for traditional financial players exploring digital asset adoption.

The Role of USDC in Modernizing Payments

USDC (USD Coin), issued by Circle, is one of the most trusted and widely adopted regulated stablecoins in the world. Pegged 1:1 to the U.S. dollar and backed by transparent reserves, USDC provides the stability needed for everyday commerce while enabling instant, borderless transfers.

Jeremy Allaire, CEO of Circle, welcomed Visa’s expansion to Solana:

“We’re excited by the use cases Visa and its partners are building with USDC to drive foundational blockchain innovation. The expansion of this pilot shows how USDC combined with Visa’s innovation is paving the way for the future of payments, commerce, and financial applications.”

By using USDC as the settlement asset, Visa ensures price stability and regulatory compliance—critical factors for merchant adoption. Instead of dealing with cryptocurrency volatility, businesses receive payments in a digital dollar equivalent they can immediately use or convert into local currency.

How It Works: From Customer to Merchant

  1. A customer initiates a payment using USDC from their crypto wallet.
  2. The funds are sent to Visa’s on-chain treasury address on Solana.
  3. Visa converts the USDC into fiat currency or credits the merchant’s account via its network partners (Worldpay or Nuvei).
  4. The merchant receives the payment almost instantly—without exposure to crypto price swings.

This process eliminates traditional banking delays, especially for international transactions that typically take 3–5 business days. With blockchain-based settlement, those same payments can settle in seconds.

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Visa’s Growing Footprint in Web3 and Blockchain

Visa’s move into Solana is not an isolated event but part of a broader strategy to integrate blockchain technology into mainstream finance. Earlier in 2023, Cuy Sheffield revealed that Visa has an “ambitious crypto roadmap” and is actively hiring talent to expand its presence in Web3.

In July 2023, Visa partnered with Gnosis—a secure Ethereum sidechain—to launch the Gnosis Card, a debit card that lets users spend directly from their on-chain wallets. This innovation bridges the gap between decentralized finance and real-world spending, allowing seamless day-to-day transactions without relying on centralized exchanges.

Meanwhile, competitors like Mastercard are also advancing in the space. Mastercard recently teamed up with Stables and Circle to allow customers to spend USDC via a virtual card wherever Mastercard is accepted—highlighting a race among payment networks to lead in digital currency adoption.

Key Benefits for Merchants and Consumers

As more businesses adopt digital-first strategies, solutions like Visa’s Solana-USDC integration offer a scalable path toward frictionless commerce.

Frequently Asked Questions (FAQ)

Q: What is USDC?
A: USDC (USD Coin) is a regulated stablecoin pegged 1:1 to the U.S. dollar. It operates across multiple blockchains and is issued by Circle with full reserve backing.

Q: Why is Visa using Solana instead of other blockchains?
A: Solana offers high throughput (up to 65k TPS), low transaction fees (under $0.001), and fast finality—making it ideal for high-volume payment processing.

Q: Can any merchant accept USDC through Visa today?
A: Not yet widely. The program is currently in pilot phase with select partners like Worldpay and Nuvei. Broader availability will depend on regulatory clarity and technical readiness.

Q: Is my money safe if I receive payments in USDC?
A: Yes. USDC is fully backed by cash and short-term U.S. Treasury securities. Circle undergoes regular audits to ensure transparency and solvency.

Q: Do I need a crypto wallet to use this system?
A: Merchants don’t need direct interaction with crypto wallets—the settlement happens behind the scenes via Visa’s partners. However, understanding digital assets can help optimize financial operations.

Q: Will this replace traditional payment methods?
A: Not immediately. This is an enhancement—not a replacement—for existing systems. It adds flexibility, especially for cross-border transactions.

Looking Ahead: The Future of Digital Payments

Visa’s expansion onto Solana represents a pivotal moment in the convergence of traditional finance and blockchain technology. As more institutions embrace stablecoins and decentralized networks, we’re moving toward a financial system that is faster, more inclusive, and globally interconnected.

With major players like Visa investing in infrastructure, education, and partnerships, the path toward widespread adoption of digital currencies is becoming clearer—and closer than ever.

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