The world of digital payments is undergoing a seismic shift, and at the heart of this transformation are two titans: Visa and Mastercard. As blockchain technology matures and stablecoins gain traction, these financial infrastructure leaders are racing to integrate decentralized finance (DeFi) innovations into their global networks. With the global card payment transaction volume projected to reach $20 trillion by 2024, the stakes couldn’t be higher.
But despite decades of fintech innovation—from PayPal to Apple Pay—the backend systems that power payments remain outdated. Settlement delays, cross-border inefficiencies, and high fees persist. Enter blockchain and stablecoins: technologies that promise 24/7 real-time settlement, lower costs, and seamless international transfers.
In April 2025, both Visa and Mastercard unveiled comprehensive roadmaps for blockchain adoption, signaling a new era in digital finance. The battle for dominance in the Web3 payment market has officially begun.
Why Blockchain Is the Future of Payments
The Limitations of Traditional Payment Systems
Visa and Mastercard dominate the global payment landscape, with combined market shares exceeding 60%. Visa alone processes up to 65,000 transactions per second across 200+ countries. Yet, behind the sleek front-end user experiences lies an aging backend infrastructure.
The traditional four-party card payment model—cardholder, merchant, issuer, and acquirer—relies on batch processing and operates only on business days. This results in:
- Settlement delays: Merchants often wait 3+ business days to receive funds.
- High cross-border costs: International transactions incur ~1% in cross-border fees and another ~1% in foreign exchange charges.
- Limited availability: No weekend or holiday processing.
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These inefficiencies create a clear opportunity for blockchain-based solutions. With 24/7 operation, near-instant settlement, and borderless transactions, blockchain offers a compelling alternative—especially when powered by stablecoins, which combine crypto speed with fiat stability.
Visa’s Four-Pronged Strategy for Stablecoin Integration
Visa sees stablecoins as foundational to the future of digital payments. In April 2025, it announced a strategic framework focused on four key areas:
1. Modernizing Settlement Infrastructure with USDC
Since 2021, Visa has piloted USDC (USD Coin) for settlement via its VisaNet network. Over $225 million in settlements have already been completed using USDC instead of traditional USD transfers.
This shift eliminates costly fiat conversions and cross-border wire delays. For example, Crypto.com reduced its upfront payment time from 8 days to just 4 and cut foreign exchange fees to 20–30 basis points.
Visa partnered with Anchorage, a regulated crypto custodian, to create secure accounts where issuers can deposit USDC via Ethereum. Acquirers like Worldpay and Nuvei can now receive USDC directly through Ethereum or Solana networks, then convert to fiat or pass on to merchants.
The goal? 24/7 real-time settlement across multiple blockchains and stablecoins.
2. Strengthening Global Remittances
Visa Direct already enables peer-to-peer fund transfers across cards, wallets, and bank accounts. By integrating stablecoins into this system, Visa aims to make cross-border remittances faster and cheaper.
To accelerate this, Visa invested in BVNK, a blockchain payments startup focused on enterprise-grade stablecoin infrastructure—expanding its reach beyond retail into corporate finance.
3. Launching Programmable Digital Currency via VTAP
In October 2024, Visa introduced the Visa Tokenized Asset Platform (VTAP)—a blockchain-based infrastructure allowing banks to issue and manage tokenized deposits and fiat-backed stablecoins.
Powered by APIs, VTAP supports smart contract automation for use cases like:
- Conditional payments
- Instant loans
- Automated compliance
Currently in sandbox mode with BBVA, VTAP will launch public pilots on Ethereum in 2025.
4. Developing Stablecoin On-Ramp and Off-Ramp Cards
Visa has facilitated over $100 billion in crypto purchases** and **$25 billion in crypto spending through its card network. To expand access, it collaborates with platforms like:
- Bridge (acquired by Stripe): Enables fintechs to issue cards linked to stablecoin balances; live in Latin America.
- Baanx: Allows users to spend USDC directly from self-hosted wallets via smart contracts.
- Rain: Offers APIs for issuing Visa cards tied to stablecoins, with features like real-time settlement and tokenized receivables.
Mastercard’s End-to-End Stablecoin Payment Ecosystem
While Visa focuses on incremental integration, Mastercard has built a full-chain solution—from wallet to checkout—announced on April 28, 2025.
1. Card Issuance & Direct Stablecoin Payments
Mastercard partners with major crypto platforms including:
- MetaMask, Kraken, Gemini, Binance, Crypto.com, and OKX
The MetaMask Card, developed with Baanx and Monavate, lets users spend crypto assets stored in their wallets. Payments are settled through Banknet after converting crypto to fiat in real time.
Initially launched in the U.S., U.K., Switzerland, and key Latin American markets, this card bridges DeFi with everyday spending.
2. USDC Settlement for Merchants
While most merchants still prefer fiat, Mastercard enables USDC settlement through partners like Nuvei and Circle. It also supports Paxos-issued stablecoins, giving businesses flexibility.
This dual option—fiat or stablecoin—lowers barriers for adoption while future-proofing payment rails.
3. On-Chain Remittances via Crypto Credential
Sending crypto requires complex wallet addresses—a major UX hurdle. Mastercard’s Crypto Credential service solves this with a verified alias system.
Key benefits:
- No need to input long wallet addresses
- Prevents transactions if recipient doesn’t support the asset
- Automatically complies with FATF’s Travel Rule for AML/KYC
Available on exchanges like Wirex, Bit2Me, and Mercado Bitcoin, the service is live across Latin America and Europe.
4. Enterprise Tokenization with Multi-Token Network (MTN)
Mastercard’s private blockchain platform, MTN, enables enterprises to issue, manage, and redeem tokens in real time.
Notable use cases:
- Ondo Finance: Tokenized U.S. Treasury bonds (OUSG) available 24/7
- JPMorgan Chase: Integrated Kinexys for real-time business payments
- Standard Chartered: Piloted tokenized carbon credits in a regulatory sandbox (May 2024)
MTN positions Mastercard as a leader in institutional-grade tokenization.
FAQs: Understanding the Stablecoin Payment Revolution
Q: Can I already use stablecoins to pay with Visa or Mastercard?
Yes—through partnered fintechs like Crypto.com, Rain, or MetaMask. Users can link stablecoin wallets to physical or virtual cards and spend seamlessly at millions of merchants worldwide.
Q: Are Visa and Mastercard replacing their networks with blockchain?
No. Both are integrating blockchain into existing systems. VisaNet and Banknet remain central; blockchain enhances backend settlement and remittance efficiency.
Q: What stablecoins do they support?
Primarily USDC (Circle), with limited support for Paxos-standardized tokens. Support for other major stablecoins may expand based on regulation and demand.
Q: Will this reduce transaction fees for consumers?
Indirectly. Lower settlement costs may lead issuers and acquirers to reduce fees over time, especially for cross-border transactions.
👉 See how stablecoin-powered cards are changing consumer spending habits.
Q: Is my money safe using stablecoin-linked cards?
Yes. These services operate under regulated frameworks. Partners like Circle (USDC issuer) maintain full reserves, and custodians like Anchorage are FDIC-insured.
Q: Which company is ahead in the Web3 payment race?
It’s too close to call. Visa leads in settlement modernization; Mastercard excels in end-to-end user experience and enterprise tokenization. The winner will likely be determined by ecosystem adoption and regulatory alignment.
The Road Ahead: Web3 Payments Go Mainstream
The moves by Visa and Mastercard mark a turning point: stablecoins are no longer niche—they’re part of mainstream finance.
Both companies are targeting four core areas:
- Stablecoin-linked card services
- Real-time settlement systems
- P2P international remittances
- Institutional tokenization platforms
While blockchain won’t immediately disrupt market shares—due to entrenched relationships with banks and merchants—it will redefine operational efficiency and open new revenue streams.
As governments clarify crypto regulations and user adoption grows, expect wider rollouts across Asia, Africa, and Europe.
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Final Thoughts
Visa and Mastercard aren’t just adapting to the blockchain revolution—they’re leading it. By blending the reliability of traditional finance with the innovation of Web3, they’re building a more inclusive, efficient, and programmable financial future.
The battle isn’t about survival—it’s about shaping what comes next.
And one thing is certain: the era of stablecoin-powered payments has officially begun.
Core Keywords: stablecoins, Visa, Mastercard, blockchain payments, USDC, tokenization, Web3 payments, crypto cards