As a seasoned analyst with over two decades of experience in the fintech sector, I have witnessed the evolution of digital payments from rudimentary systems to complex, interconnected networks spanning the globe. The recent collaboration between Nuvei, Rain, BitGo, and Visa to launch payment settlement using stablecoins for merchants in Latin America is yet another testament to this transformation.
In simpler terms, financial technology company Nuvei based in Canada has introduced a payment system that settles transactions using stablecoins for businesses in Latin America. The interoperability platform Rain, digital wallet provider BitGo, and credit card issuer Visa are collaborating with Nuvei on this blockchain-based solution.
Ever tighter integrations in Latam
Merchants from Latin America who join the Nuvei platform can opt for either a physical or digital Visa card to process stablecoin payments directly from their digital wallet. BitGo ensures secure storage of these digital assets.
The service can be utilized wherever Visa payments are validated. It promises quicker cross-border transfers, less intricacy, and enhanced operational fluidity over conventional payment systems, as suggested in the statement.
The term “Nuvei’s expansion into blockchain payments” might be a bit misleading because, while it suggests a recent development, Nuvei actually began processing transactions in nearly 40 cryptocurrencies back in 2021.
In October, Visa teamed up with the Avalanche Foundation to launch a cryptocurrency debit card for consumers in Latin America, allowing users to connect their own digital wallets.
Previously, Visa and Nuvei collaborated on initiatives where Nuvei, together with Worldpay, partnered with Visa for trials that facilitated transactions using USDC (Circle’s USD Coin) on both the Solana and Ethereum blockchains.
In the unveiling of the novel solution, US Dollar Coin (USDC) was cited, serving merely as an illustration of a type of stablecoin suitable for utilization. Notably, USDC has been incorporated into the rapid-transfer payment infrastructures of Brazil and Mexico already.
Over the past few years, Nuvei has experienced significant growth in the Latin American market. By 2024, they had launched local card payment processing services in Colombia and Mexico, using domestic banks for these transactions. This practice is known as local acquiring. Additionally, Nuvei obtained a Payment Institution license in Brazil.
Mastercard has a piece of the action in other regions
In collaboration with Mastercard, starting from July, Nuvei offers European customers a way to convert their digital assets into traditional money using Mastercard’s Move service. Mastercard has been testing a business version of the Move platform with blockchain payment company Fnality.
In 2023, Mastercard teamed up with Australian digital currency platform Stables, enabling consumers across the Asia-Pacific region to spend US Dollar Coin (USDC) wherever Mastercard is accepted. Stables handled the wallet services and the settlement system for this partnership. Various methods can be used to fund these wallets, and deposits in other stablecoins are instantly converted into USDC.
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2024-12-06 22:16