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Visa Just Made A Bet That Could Reshape How Money Moves Globally — And Stablecoins Are At The Center Of It
Yahoo Finance· 2025-10-08 16:01
Core Insights - Visa has launched a pilot program allowing businesses to fund international payments using stablecoins, marking a significant shift in cross-border commerce [2][4] - The passage of the Genius Act has provided regulatory clarity, enabling major institutions like Visa to move forward with stablecoin initiatives [3][4] - The use of stablecoins can free up capital for companies by reducing the need to maintain cash reserves in multiple currencies [5][6] Group 1 - Visa's pilot program represents a fundamental change in how businesses manage international payments, moving away from traditional cash deposits [2] - The Genius Act has established clear guidelines for stablecoin issuers, which has been pivotal for institutional adoption [3] - Visa is collaborating with partners to expand the pilot program, allowing various financial institutions to utilize stablecoins for pre-funding accounts [4] Group 2 - Companies engaged in global business can benefit from the efficiency of stablecoins, which facilitate faster transactions and 24/7 settlement [6] - The traditional requirement for companies to hold cash reserves in multiple currencies can lead to idle capital, which stablecoins can help alleviate [5]
Can Visa Solve the High Remittance Fees Problem With Stablecoins?
ZACKS· 2025-06-17 14:56
Group 1: Digital Remittance Trends - Visa Inc.'s report indicates a significant shift towards digital remittance methods in North America, with 69% of U.S. respondents preferring apps for sending money and 61% for receiving, while in Canada, 65% favor digital platforms for both [1][9] - Only 5-8% of U.S. consumers continue to rely on cash or checks for remittances, with unexpected financial needs being the primary reason for money transfers, cited by 36% in the U.S. and 32% in Canada [2][9] Group 2: Consumer Concerns and Visa's Response - High transaction fees are a major concern, with 27% of U.S. users and 30% of Canadian users dissatisfied with the costs associated with digital money transfers [3][9] - Visa is investing in stablecoin technology to improve the speed, affordability, and security of remittances, while also addressing hidden charges associated with traditional methods [3][4] Group 3: Competitive Landscape - Mastercard is enhancing cross-border remittances through its Mastercard Move program, allowing transfers to nearly 10 billion endpoints in over 200 countries and piloting alias-based remittances for simpler transactions [5] - Remitly is expanding its remittance ecosystem by connecting banks, agents, and digital wallets across 170 countries, and is exploring AI-driven customer service tools and cryptocurrencies [6] Group 4: Financial Performance and Estimates - Visa's shares have increased by 11.6% year to date, outperforming the broader industry and the S&P 500 Index [7][9] - The Zacks Consensus Estimate for Visa's fiscal 2025 earnings suggests a 12.9% year-over-year growth, followed by 12.5% growth in the subsequent year [12]