Payments players cozy up to crypto

Core Insights - The adoption of stablecoins is increasing among major payment processors and financial technology companies, driven by regulatory frameworks like the Genius Act [2][4] - Stablecoins, which are pegged to fiat currencies, offer more stability compared to traditional cryptocurrencies, making them attractive for various financial applications [3] - The circulation of stablecoins has surged dramatically, reaching approximately 273 billion as of September 2023, up from 2.6 billion in September 2019 [5] Industry Developments - Klarna is testing a stablecoin, joining other major players in the payments industry [1] - PayPal introduced a stablecoin in 2023, while Visa, Mastercard, Stripe, and Fiserv are also entering the stablecoin market [4] - Visa is focusing on international payments and has partnered with Bridge to enable stablecoin transactions in Latin America [7] Practical Applications - Stablecoins are seen as a means to simplify cross-border transactions and reduce costs, with additional benefits such as facilitating transactions outside of banking hours [6] - Visa Direct is piloting a program that allows businesses to send payments directly to stablecoin wallets, enhancing the efficiency of cross-border payments [8]