The global payments landscape is undergoing a quiet revolution. At the center of this transformation are two long-standing giants—Visa and Mastercard—both now actively integrating blockchain and stablecoin technologies into their core infrastructure. As digital finance evolves, these companies are not merely reacting to change; they're shaping the future of how money moves across borders, businesses, and wallets.
With over 20 trillion USD in global card transaction volume expected by 2025, even a partial shift toward blockchain-based processing could unlock massive efficiency gains. And both firms are betting that stablecoins—digital currencies pegged to real-world assets like the US dollar—are key to modernizing payment systems.
Why Blockchain Matters for Modern Payments
Despite decades of innovation in user-facing fintech—from Apple Pay to digital wallets—the backend infrastructure behind most transactions remains outdated. Settlements often take days, international transfers incur high fees, and cross-border compliance slows everything down.
Enter blockchain: a decentralized, 24/7 operational network capable of near-instant settlement with minimal intermediaries. Its potential to streamline payments has not gone unnoticed by the industry leaders.
👉 Discover how next-gen payment networks are redefining financial infrastructure.
The Four-Pillar Model of Traditional Payments
Visa and Mastercard operate on an open-loop "four-party model" consisting of:
- Cardholders
- Merchants
- Issuing banks (that provide cards)
- Acquiring banks (that process merchant payments)
While these networks don’t issue cards or lend money directly, they act as the central rails connecting all parties. They earn small fees per transaction but benefit from massive scale—Visa reported a 67% operating margin in 2023, Mastercard 57%.
Yet, despite their dominance, challenges persist:
- Settlement delays: Most merchants receive funds after 2–3 business days.
- High cross-border costs: International transactions often include ~1% transfer fees and ~1% foreign exchange charges.
Blockchain offers solutions: real-time clearing, lower fees, and seamless cross-border transfers. Now, both Visa and Mastercard are building bridges between traditional finance and Web3.
Visa’s Four-Pronged Stablecoin Strategy
In April 2025, Visa unveiled a comprehensive roadmap to embed stablecoins into its global network. Far from experimental, these initiatives reflect a strategic overhaul of its core infrastructure.
1. Modernizing Settlement with USDC
Since 2021, Visa has piloted USDC (a USD-pegged stablecoin) for settlement across its VisaNet system. Over $225 million in transactions have already been processed this way.
Traditionally, issuing banks send USD to Visa for settlement. Now, they can use USDC instead—eliminating costly FX conversions and wire delays. For crypto-native firms like Crypto.com, this reduced pre-funding time from 8 days to just 4 and cut FX costs by 70–80%.
Working with Anchorage, Visa created secure custodial wallets where issuers can deposit USDC via Ethereum. This allows instant reconciliation without relying on traditional banking rails.
Moreover, Visa extended this capability to acquiring institutions like Worldpay and Nuvei in 2023, enabling them to receive USDC over Ethereum and Solana. Merchants can then choose to keep funds in stablecoins or convert to fiat.
Future goals: Expand multi-chain support, enable 24/7 real-time settlement, and onboard more stablecoins beyond USDC.
2. Supercharging Global Remittances
Visa Direct already powers peer-to-peer (P2P) money transfers across cards, wallets, and accounts. By integrating stablecoins into this system, Visa aims to make cross-border remittances faster and cheaper.
To accelerate progress, Visa invested in BVNK, a startup building stablecoin infrastructure for enterprises. This signals a broader ambition: not just retail payments, but enterprise-grade financial plumbing.
3. Launching the Visa Tokenized Asset Platform (VTAP)
One of the most powerful features of blockchain is programmability through smart contracts. Recognizing this, Visa launched VTAP (Visa Tokenized Asset Platform) in October 2024.
VTAP enables banks and financial institutions to issue and manage tokenized assets—such as stablecoins or tokenized deposits—via Visa’s API ecosystem. These tokens can be programmed for:
- Conditional payments
- Automated lending
- Instant settlements
Currently in sandbox mode with Spanish bank BBVA, VTAP is expected to go live on Ethereum’s public mainnet in 2025 with select clients.
4. Building On-Ramps with Stablecoin Cards
Visa has facilitated over $100 billion** in crypto purchases and **$25 billion in crypto spending via card-linked services. To deepen access, it partners with stablecoin card platforms:
- Bridge (acquired by Stripe): Offers an API allowing fintechs to issue Visa cards linked to stablecoin balances. Users spend USDC; Bridge converts it to fiat behind the scenes.
- Baanx: Enables direct spending from self-custodied wallets using USDC. Payments trigger smart contracts that convert funds instantly.
- Rain: A New York-based platform offering APIs for issuing stablecoin Visa cards, real-time settlement, and tokenized receivables.
These services are live in Latin America and expanding into Europe, Africa, and Asia.
👉 See how seamless crypto-to-fiat integration is reshaping everyday payments.
Mastercard’s End-to-End Stablecoin Ecosystem
Just two days before Visa’s announcement, on April 28, 2025, Mastercard revealed its own full-stack stablecoin infrastructure—from wallets to checkout to settlement.
Unlike Visa’s centralized VisaNet, Mastercard uses Banknet, a distributed network backed by over 1,000 data centers worldwide. This architecture aligns well with decentralized finance principles.
1. Card Issuance & Payment Enablement
Mastercard collaborates with major crypto platforms:
- Wallets: MetaMask
- Exchanges: Kraken, Gemini, Binance, Crypto.com, OKX
- Fintechs: Monavate, Bleap
The MetaMask Card, powered by Mastercard and Baanx, lets users spend crypto directly from their wallet. Monavate handles the backend conversion between Ethereum and Banknet. Initially launching in Argentina, Brazil, Mexico, the UK, and the US, it exemplifies Web3-meets-real-world usability.
Users can also spend stablecoins directly from exchange accounts—no withdrawal needed.
2. USDC Settlement for Merchants
While most merchants still prefer fiat payouts, Mastercard supports USDC settlements via partnerships with Nuvei and Circle. It also enables settlements using Paxos-issued stablecoins.
This gives businesses flexibility: accept payments in crypto but get paid in the form they need.
3. Simplifying P2P Transfers: Mastercard Crypto Credential
Sending crypto via wallet addresses is risky and complex. To fix this, Mastercard introduced Crypto Credential, a service that lets users create verified aliases (like “@john”) for sending stablecoins.
Benefits include:
- No need to copy-paste long wallet addresses
- Prevents transactions if recipient doesn’t support the asset
- Automatically complies with FATF’s Travel Rule by sharing KYC data between institutions
Live in Latin America (Argentina, Chile, Peru) and Europe (France, Spain), supported by Wirex, Bit2Me, and Mercado Bitcoin.
4. Enterprise Tokenization via Multi-Token Network (MTN)
Mastercard’s MTN is a private blockchain platform helping institutions tokenize and manage digital assets at scale.
Real-world use cases:
- Ondo Finance: Tokenized a US Treasury-backed bond fund (OUSG) on MTN, enabling instant enterprise trading.
- JPMorgan: Integrated Kinexys payment system with MTN for real-time corporate transfers.
- Standard Chartered: Piloted carbon credit tokenization on MTN in May 2024.
This positions MTN as a backbone for institutional DeFi applications.
Who Will Lead the Web3 Payment Revolution?
Both companies are targeting four key areas:
- Stablecoin-linked cards
- Institutional tokenization platforms
- Stablecoin settlement systems
- P2P cross-border remittances
Their parallel moves suggest a fierce but constructive race—one that benefits consumers, businesses, and innovators alike.
But will blockchain disrupt their market share? Unlikely. While settlement efficiency will improve dramatically, dominance in payments still hinges on decades-old relationships with banks, merchants, and acquirers—relationships neither company is losing anytime soon.
Frequently Asked Questions (FAQ)
Q: Are Visa and Mastercard replacing their networks with blockchain?
A: No. They’re enhancing existing systems by integrating blockchain for specific functions like settlement and remittances—not replacing core infrastructure entirely.
Q: Can I spend stablecoins directly using a Visa or Mastercard?
A: Yes—through partner-issued cards like the MetaMask Card or Crypto.com Visa Card. These convert stablecoins to fiat at point-of-sale.
Q: Which stablecoin do they support?
A: Primarily USDC, though Mastercard also supports Paxos-issued stablecoins. Support for other regulated tokens may expand.
Q: Is this only for crypto users?
A: No. While early adopters are crypto-savvy, the goal is mass-market integration—making fast, low-cost payments accessible to everyone.
Q: Do these changes affect my credit score or card terms?
A: Not directly. Backend tech upgrades don’t alter consumer credit agreements unless your issuer chooses to modify terms.
Q: When will these features be available globally?
A: Rollouts are ongoing. Latin America and Europe lead adoption; broader global availability is expected by late 2025–2026.
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Final Thoughts
Visa and Mastercard aren’t just adapting to the stablecoin era—they’re architecting it. From programmable money to instant global settlements, their investments signal a future where blockchain isn’t an alternative system but a foundational layer of mainstream finance.
For users and businesses alike, the result will be faster payments, lower costs, and greater financial inclusion—all while maintaining regulatory compliance and security.
The race for Web3 payment dominance isn’t about disruption; it’s about evolution. And right now, Visa and Mastercard are leading the charge.