The race to dominate Web3 payments is heating up — and at the center of it are two financial titans: Visa and Mastercard. Once synonymous with plastic cards and centralized networks, these giants are now redefining their roles in a digital-first economy powered by blockchain and stablecoins. With global card transaction volume projected to hit $20 trillion in 2025, even a small shift toward on-chain infrastructure could reshape the future of finance.
But why now? Despite innovations in front-end fintech — from Apple Pay to digital wallets — the back-end systems handling settlements remain outdated, slow, and costly, especially across borders. Blockchain offers a compelling alternative: 24/7 settlement, lower fees, and programmable money. Recognizing this, both Visa and Mastercard unveiled comprehensive stablecoin strategies in April 2025, signaling a pivotal shift toward decentralized payment infrastructure.
Let’s explore how they’re positioning themselves for the next era of finance.
Why Blockchain Is the Future of Payments
The Dominance of Visa and Mastercard
Visa and Mastercard control nearly 63% of the global card payment market — Visa with 39% and Mastercard with 24%. While UnionPay dominates China’s domestic transactions, Visa and Mastercard remain the backbone of international commerce. Their business model thrives on scale: operating high-speed networks that connect issuers, acquirers, merchants, and cardholders, earning tiny fees per transaction while maintaining massive profit margins (67% for Visa and 57% for Mastercard in 2023).
Yet, beneath this success lies a systemic inefficiency — one that blockchain is uniquely positioned to solve.
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How Traditional Card Payments Work
Most users never see the complex machinery behind a swipe or tap. The process follows a "four-party model" and unfolds over days:
- D+0 (Day of Transaction): A payment request travels from merchant → acquirer → card network → issuer.
- Authorization (Same Day): The issuer checks credit, fraud risk, and approves or declines.
- Settlement (D+3): Funds move from issuer to acquirer (minus fees), then to the merchant.
- Billing & Repayment (D+30): The cardholder pays the issuer.
This system works — but slowly. Settlement delays, batch processing, and cross-border friction create real costs for businesses and consumers alike.
Can Blockchain Fix These Flaws?
Yes — and that’s exactly why Visa and Mastercard are investing heavily in stablecoins and on-chain settlement.
Blockchain operates 24/7, clears transactions in minutes (or seconds), and bypasses costly intermediaries. For international payments, it slashes both time and cost: no more 1–3% FX spreads or multi-day waits. Stablecoins like USDC act as digital dollars, bridging crypto and fiat seamlessly.
Now, both companies are integrating stablecoins into every layer of their ecosystems — from consumer cards to institutional platforms.
Visa’s Four-Pronged Strategy for Web3
In April 2025, Visa laid out a bold vision: a hybrid payment network where stablecoins coexist with traditional currency flows. Here’s how they’re executing it.
1. Modernizing Settlement Infrastructure
Since 2021, Visa has tested USDC-based settlements on its VisaNet network — completing over $225 million in transactions. Instead of transferring USD across borders, issuing banks can now settle directly in USDC via Ethereum or Solana.
Take Crypto.com: previously, converting crypto to fiat for payments took up to 8 days and incurred high FX costs. With USDC settlement through Anchorage’s custodial solution, that time dropped to 4 days, with FX fees reduced to just 20–30 basis points.
In 2023, Visa expanded this to acquirers like Worldpay and Nuvei, enabling them to receive USDC directly from merchants. This creates an end-to-end stablecoin pipeline: issuers pay acquirers in USDC → acquirers pass it to merchants or convert to fiat.
Future plans include 24/7 real-time settlement across multiple chains and stablecoins.
2. Enhancing Global Remittances
Visa Direct already powers peer-to-peer transfers globally. By integrating stablecoins, Visa aims to make cross-border remittances faster and cheaper. In May 2025, Visa invested in BVNK, a startup building enterprise-grade stablecoin rails — signaling its intent to expand beyond retail into B2B payment infrastructure.
3. Launching Programmable Digital Currency
In October 2024, Visa introduced the Visa Tokenized Asset Platform (VTAP) — a blockchain-based infrastructure allowing banks to issue regulated digital tokens (e.g., tokenized deposits or stablecoins). Hosted via APIs, VTAP enables automation through smart contracts: think conditional payouts, instant loans, or revenue-sharing agreements.
Currently in sandbox mode with BBVA in Spain, VTAP is expected to go live on Ethereum for real clients in 2025.
4. Building On-Ramps with Stablecoin Cards
Visa has processed over $100 billion in crypto purchases and $25 billion in crypto spending via card-linked services. To expand access, they’re partnering with firms like:
- Bridge (acquired by Stripe): Offers an API for issuing stablecoin-backed Visa cards; live in Latin America.
- Baanx: Enables direct USDC spending from self-custody wallets; integrates with MetaMask.
- Rain: Provides global card issuance with real-time settlement and tokenized receivables.
These tools turn stablecoins into everyday spending power — without leaving the blockchain.
Mastercard’s End-to-End Stablecoin Ecosystem
Mastercard isn’t lagging. On April 28, 2025, it announced a fully integrated stablecoin infrastructure spanning wallets to checkout — a true “from chain to cash” solution.
1. Card Issuance & Payment Support
Mastercard collaborates with major crypto platforms including Kraken, Gemini, Bybit, Crypto.com, Binance, and OKX, allowing users to spend stablecoins directly via linked cards.
The MetaMask Card, launched with Baanx and Mastercard, lets users spend ETH or USDC seamlessly. Behind the scenes, Monavate bridges Ethereum to Banknet, converting crypto to fiat instantly. Available in the U.S., UK, Switzerland, and key Latin American markets.
2. USDC Settlement for Merchants
While most merchants still prefer fiat, Mastercard supports USDC payouts through partnerships with Nuvei and Circle. It also enables settlement in Paxos-issued stablecoins via its collaboration with Paxos Trust Company.
This gives businesses flexibility: accept payments in crypto, settle in fiat — or keep funds on-chain.
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3. Streamlining Chain-Based Transfers: Crypto Credential
One major barrier to mainstream adoption? Sending funds to long, error-prone wallet addresses. Mastercard’s solution: Crypto Credential.
This service allows users on supported exchanges (like Wirex and Bit2Me) to create verified aliases — think “@jane” instead of “0xAbC…” — making transfers safer and easier. It also blocks transactions if the recipient’s wallet doesn’t support the asset, preventing lost funds.
Critically, Crypto Credential automates compliance with the FATF’s Travel Rule, exchanging KYC data between institutions — essential for regulatory acceptance.
Live in Argentina, Brazil, Mexico, France, Spain, and Switzerland.
4. Enterprise Tokenization with Multi-Token Network (MTN)
Mastercard’s private blockchain platform, MTN, enables institutions to issue and manage tokens at scale:
- Ondo Finance: Tokenized U.S. Treasury-backed OUSG fund on MTN for instant trading.
- JPMorgan: Integrated Kinexys payment system with MTN for real-time corporate settlements.
- Standard Chartered: Piloted tokenized carbon credits on MTN in 2024 as part of a regulatory sandbox initiative.
MTN represents Mastercard’s bet on institutional Web3 — where efficiency meets compliance.
Who Will Win the Web3 Payment War?
Both companies are targeting four key areas:
- Stablecoin-linked cards
- On-chain settlement systems
- P2P cross-border remittances
- Institutional tokenization platforms
Their strategies are remarkably aligned — but differences exist:
- Visa focuses on upgrading its existing network with modular blockchain integrations.
- Mastercard builds a full-stack ecosystem from wallet to compliance layer.
While blockchain may revolutionize payment infrastructure, it’s unlikely to disrupt market share. Decades of entrenched relationships with banks, merchants, and governments give both companies unshakable leverage.
Still, the implications are profound: faster settlements, lower costs, programmable finance, and broader financial inclusion.
Frequently Asked Questions (FAQ)
Q: Are Visa and Mastercard replacing traditional payments with crypto?
A: No. They’re integrating stablecoins into existing systems to improve speed and efficiency — not abandoning fiat.
Q: Can I use USDC directly at any merchant?
A: Not yet widely — but through Visa/Mastercard-linked cards (like MetaMask Card), you can spend USDC anywhere these networks are accepted.
Q: Is my money safe using stablecoin cards?
A: Yes. Most services use regulated custodians (like Anchorage or Circle), and funds are typically insured up to standard limits.
Q: Do these changes affect consumers directly?
A: Over time — yes. Expect faster international transfers, fewer fees, and new financial products powered by smart contracts.
Q: Which stablecoins do they support?
A: Primarily USDC, but Mastercard also supports Paxos Standard (PAX). Regulatory compliance is key — so only audited, reserve-backed stablecoins are used.
Q: Will blockchain replace SWIFT or ACH?
A: Eventually — for certain use cases. Real-time settlement makes blockchain ideal for remittances and corporate treasury operations.
👉 Explore the future of digital payments powered by blockchain innovation.
The age of stablecoin-powered finance is no longer speculative — it’s being built today by the very institutions that defined the last century of payments. Whether you're a developer, investor, or everyday user, the shift is already underway.