- Visa and Bridge roll out stablecoin cards in six Latin American countries
- Users load USDC onto Visa cards and pay merchants in local currency
- Bridge’s APIs let developers launch card programs without local banks
Visa is expanding its presence in the digital payments space with a new product designed to enable stablecoin payments across six countries in Latin America. This move, made in collaboration with Bridge, a Stripe-owned company, illustrates a growing interest in integrating blockchain technology into everyday financial transactions.
Visa introduces stablecoin payments in six countries
Visa launched a new stablecoin-based payment service in partnership with Bridge. This rollout spans Mexico, Argentina, Colombia, Ecuador, Peru, and Chile. The offering allows users to make purchases using stablecoins such as USDC, issued by Circle and Coinbase, through Visa-branded cards. These can be physical cards or digital versions stored in wallets like Apple Pay. The cards operate similarly to traditional ones. Merchants receive payments in their local currencies without being exposed to the volatility often associated with cryptocurrencies. This setup makes the new system a seamless experience for both merchants and consumers.
How the Visa stablecoin product works
A key use case shared by Rubail Birwadker, Visa’s senior vice president, involved a freelance worker in Colombia. If the worker receives payments in US dollars from clients abroad, those payments can be sent in stablecoins. The worker can then use a Visa card to spend these funds directly, whether online or in physical stores. From the merchant’s point of view, the payment appears as a normal Visa transaction. Funds are settled instantly in local currency. This model supports financial inclusion and practical usage of stablecoins, especially in economies where local currency instability is common.
Growing popularity of stablecoins and Visa’s role
Stablecoins have gained traction in traditional finance due to their stability and borderless transfer capability. These blockchain assets are pegged to fiat currencies, such as the US dollar, and offer fast, low-cost transaction methods. Visa’s approach aims to bridge the gap between digital assets and traditional commerce. Users who already hold stablecoins for hedging purposes can now spend them directly through existing payment networks.
Visa’s previous involvement in crypto payments
This is not Visa’s first venture into the digital currency ecosystem. The company previously supported Bitcoin-linked cards from firms like Crypto.com. However, those cards saw limited adoption, partly due to the price volatility of Bitcoin and its associated tax implications when used for purchases. The new service focuses on non-volatile assets like USDC, making it more suitable for everyday transactions. It’s designed for broad use across different markets and is built to integrate with local infrastructure more efficiently than previous crypto-based products.
Bridge’s role in the Visa payment service
Bridge, launched in 2023 by former Coinbase employees Zach Abrams and Sean Yu, was acquired by Stripe for $1.1 billion. The startup provides APIs and backend solutions for stablecoin infrastructure. Its technology allows Visa to offer this service flexibly to developers and companies in various countries. Using Bridge’s tools, third-party developers can create applications that connect directly with Visa’s system. This reduces the complexity of launching card services in regions that lack robust financial infrastructure.
Visa’s plans for regional expansion
According to Visa and Bridge, the new offering is just the beginning. While the initial rollout covers six Latin American countries, the companies intend to scale the service further. They plan to support other stablecoins and additional blockchain networks in the near future. Bridge is also expected to announce partnerships with major banks during Stripe’s upcoming Sessions event. These collaborations may help boost adoption and provide users with more ways to use their digital assets for regular purchases.
Stablecoin cards and the merchant experience
For merchants, the service functions as any other Visa card would. Transactions are processed through the Visa network, and settlement happens in local currency. There is no need for merchants to handle or convert stablecoins themselves. This setup simplifies the adoption process and makes it easier for businesses to accept payments from international clients or consumers holding digital currency balances.
Financial inclusion through Visa’s offering
In regions with less-developed fintech infrastructure, such as parts of Latin America, stablecoin-based cards present a unique solution. Users who receive funds from abroad can bypass traditional banking barriers and use their digital income directly in stores. This feature is particularly helpful in places where currency devaluation is a concern. Holding assets in stablecoins allows users to preserve value and spend money using familiar systems supported by Visa’s network.
Conclusion
Visa’s new stablecoin initiative reflects a practical application of blockchain in everyday commerce. By partnering with Bridge and leveraging Stripe’s infrastructure, Visa enables consumers in six Latin American countries to spend digital assets through familiar payment channels. The program may represent a meaningful step in the integration of crypto into global financial systems.
Disclaimer
The information provided in this article is for informational purposes only and should not be considered financial advice. The article does not offer sufficient information to make investment decisions, nor does it constitute an offer, recommendation, or solicitation to buy or sell any financial instrument. The content is opinion of the author and does not reflect any view or suggestion or any kind of advise from cryptonewsbytes.com. The author declares he does not hold any of the above mentioned tokens or received any incentive from any company.
