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No, this wouldn't let consumers pay their bills in USDC, but rather allow banks and merchants to be paid in USDC. Settlement is the process in which an acquire
by firloop 6y ago
No, this wouldn't let consumers pay their bills in USDC, but rather allow banks and merchants to be paid in USDC.
Settlement is the process in which an acquirer "settles" up with Visa, which happens after a transaction is authorized[0]. The acquirer sends Visa a list of transactions and monetary amounts, Visa accepts this and forwards along money for the transactions to the acquiring bank.
Visa is saying that they are now sending USDC (over the blockchain? unclear.) instead of fiat currency over traditional banking rails.
Later this year, Visa will expand these capabilities to more acquirers/merchants.
[0]: This page explains more. https://financetrain.com/how-credit-card-transaction-processing-works/ https://financetrain.com/how-credit-card-transaction-process...
- tpmx 6y agoAh. That makes more sense! Thanks.
- arcticbull 6y agoOk, but. Why.
- tarsinge 6y ago> No, this wouldn't let consumers pay their bills in USDC, but rather allow banks and merchants to be paid in USDC. I’m not sure, from the first link of the parent: > Visa has launched a pilot that allows Crypto.com to send USDC to Visa to settle a portion of its obligations for the Crypto.com Visa card program. Crypto.com is a Visa issuer, so if they can now settle with Visa by sending USDC, it logically means Crypto.com Visa card holder will be able directly use the USDC from their account (without converting them to fiat first).