Visa and Mastercard Are Betting Big on Stablecoins — What’s at Stake?

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The battle for dominance in the Web3 payment ecosystem is heating up, with Visa and Mastercard unveiling ambitious strategies to integrate stablecoins and blockchain technology into their global payment networks. As traditional financial infrastructure struggles with slow settlement times and high cross-border fees, these payment giants are positioning themselves at the forefront of a financial revolution—one powered by digital assets.

This shift isn’t speculative. By 2025, global card payment transaction volume is expected to exceed $20 trillion. If even a fraction of that flow transitions to blockchain-based processing, it could unlock unprecedented growth for the stablecoin and decentralized finance (DeFi) sectors.

In April 2025, both Visa and Mastercard announced comprehensive roadmaps focused on four key areas:

  1. Stablecoin-linked card services
  2. Blockchain-based settlement systems
  3. Peer-to-peer (P2P) international remittances
  4. Institutional tokenization platforms

Who will lead the charge into the future of payments? Let’s break down their strategies, progress, and long-term visions.

The Foundation: Can Blockchain Power Real-World Payments?

The Dominance of Visa and Mastercard

As of 2025, Visa holds 39% of the global payment market share, while Mastercard controls 24%. Together, they form the backbone of modern digital transactions across more than 200 countries and over 150 million merchant locations.

Despite innovations in front-end fintech—like Apple Pay, Google Pay, and Stripe—the back-end infrastructure remains outdated. Settlements often take days, especially across borders, and fees can be exorbitant. This inefficiency presents a golden opportunity for blockchain to step in.

👉 Discover how next-gen payment systems are transforming global finance today.

How Traditional Card Payments Work: The Four-Party Model

Visa and Mastercard operate under an “open-loop” four-party model, connecting:

Here’s how a typical transaction unfolds:

  1. Payment Request (D+0): A customer swipes or taps at a store; data flows from merchant → acquirer → card network → issuer.
  2. Authorization (D+0): The issuer verifies funds, credit limit, and fraud risk, then approves or declines.
  3. Settlement (D+3): Funds move from issuer to acquirer (minus interchange fees), then to the merchant (minus processing fees).
  4. Billing & Repayment (D+30): The cardholder receives a statement and pays the balance.

While authorization happens in seconds, settlement drags on for days—especially internationally.

Why Blockchain Is the Missing Link

Two major pain points plague traditional systems:

Enter blockchain—a 24/7 decentralized network enabling near-instant, low-cost settlements regardless of geography. With stablecoins like USDC serving as digital dollar proxies, real-time global payments become not just possible—but scalable.

Visa’s Four-Pronged Strategy for Web3 Payments

1. Modernizing Settlement Infrastructure with USDC

Since 2021, Visa has piloted USDC-based settlements through its existing VisaNet network—processing over $225 million to date. Instead of sending USD across borders, issuing banks can now settle directly in USDC via Ethereum or Solana.

For crypto-native companies like Crypto.com, this eliminates costly conversions from crypto → fiat → cross-border wire. Settlement time dropped from 8 days to just 4, with FX costs reduced by 70–80 basis points.

In partnership with Anchorage, Visa established custodial accounts where issuers can deposit USDC for settlement. Acquirers like Worldpay and Nuvei can now receive USDC directly and pass it to merchants—or convert it locally.

Future plans include expanding to more blockchains, supporting multiple stablecoins, and enabling 24/7 real-time settlement.

2. Enhancing Global Remittance with Stablecoins

Visa Direct already powers P2P money transfers across cards, wallets, and bank accounts. By integrating stablecoins into this system, Visa aims to make cross-border remittances faster and cheaper.

To strengthen its capabilities beyond retail use cases, Visa invested in BVNK, a startup building stablecoin infrastructure for enterprises—signaling a strategic push into B2B payments and institutional finance.

3. Launching the Visa Tokenized Asset Platform (VTAP)

Announced in October 2024, VTAP is Visa’s blockchain-based platform allowing banks to issue and manage regulated digital tokens—such as stablecoins or tokenized deposits.

Powered by APIs, VTAP integrates seamlessly with legacy systems. Tokens issued via VTAP can interact with smart contracts for automated workflows like:

Currently in sandbox testing with Spain’s BBVA, Visa plans to launch live pilot programs on Ethereum’s public mainnet in 2025.

4. Building On-Ramps with Stablecoin Cards

Visa has processed over $100 billion in crypto purchases** and **$25 billion in crypto spending through its card network. To deepen this ecosystem, it partners with infrastructure providers like:

These collaborations create frictionless bridges between crypto wallets and everyday commerce.

👉 See how you can access seamless digital asset transactions in real time.

Mastercard’s End-to-End Stablecoin Ecosystem

Unlike Visa’s centralized VisaNet, Mastercard leverages Banknet, a distributed network powered by over 1,000 data centers worldwide. In April 2025, Mastercard unveiled a full-stack stablecoin solution—from wallet to checkout.

1. Card Issuance & Payment Support

Mastercard collaborates with leading crypto platforms including:

The MetaMask Card, built with Baanx and Monavate, allows users to spend crypto holdings directly. When used, funds flow from MetaMask → Monavate’s bridge → Banknet → merchant—instantly converted to fiat.

Initially available in Argentina, Brazil, Switzerland, the UK, and the US.

2. USDC Settlement for Merchants

While most merchants still prefer fiat, Mastercard supports direct USDC settlement via partnerships with:

This gives businesses flexibility—accept crypto without volatility risk.

3. Mastercard Crypto Credential: Smarter Chain Transfers

Sending stablecoins via blockchain is fast—but UX challenges remain:

Mastercard’s Crypto Credential solves this with a verified alias system. Users send funds using simple names (e.g., “@jane”), not long strings of characters. The system also checks compatibility pre-transfer and auto-exchanges Travel Rule data for compliance.

Live in Latin America and Europe via exchanges like Wirex and Bit2Me.

4. Enterprise Tokenization via Multi-Token Network (MTN)

Mastercard’s private blockchain solution, MTN, enables institutions to tokenize assets and conduct instant cross-border transactions.

Notable use cases:

Who Will Win the Web3 Payment War?

Both companies released major stablecoin initiatives within days of each other in April 2025—no coincidence. They’re racing to shape the next generation of financial infrastructure.

While blockchain will dramatically improve efficiency—real-time settlement, lower costs, programmable money—it’s unlikely to disrupt their market dominance anytime soon. Why?

Because payment leadership isn’t just about technology—it’s about decades-old relationships with banks, merchants, and regulators. These moats are deep.

Still, early adoption gives them control over standards, compliance frameworks, and developer ecosystems—critical advantages in shaping Web3 finance.

Frequently Asked Questions (FAQ)

Q: Are Visa and Mastercard replacing traditional money with stablecoins?
A: Not replacing—but integrating. They’re using stablecoins as efficient rails for settlement and remittances while maintaining fiat-denominated user experiences.

Q: Can I spend stablecoins directly using my Visa or Mastercard?
A: Yes—with certain cards linked to crypto wallets (e.g., Crypto.com Visa Card or MetaMask Card). Your stablecoins are instantly converted at point-of-sale.

Q: Is this safe? How do they handle security and regulation?
A: Both companies work exclusively with regulated partners (like Circle for USDC) and implement robust KYC/AML processes. Transactions comply with global standards like FATF’s Travel Rule.

Q: Which stablecoin is most widely supported?
A: USDC (USD Coin) is the dominant choice due to its regulatory clarity and backing by Circle and major financial institutions.

Q: Will this reduce transaction fees for consumers?
A: Indirectly. Lower backend costs may lead to cheaper merchant processing fees, which could translate into lower prices or better rewards programs over time.

Q: When will these services be available globally?
A: Many are already live in North America, Latin America, and parts of Europe. Expansion into Africa, Asia, and the Middle East is underway throughout 2025.

The future of payments is being rewritten—not by startups alone, but by the very giants who built the old system. As Visa and Mastercard embrace stablecoins and blockchain, they’re not just adapting—they’re defining what comes next.

👉 Stay ahead of the curve—explore how digital assets are reshaping global finance now.

Core keywords integrated: Visa, Mastercard, stablecoins, blockchain payments, USDC, tokenization, Web3 payments