Visa Brings Onchain Lending to Payment Settlement

Visa is connecting its payment settlement data with onchain lending infrastructure in a move that could give stablecoin-linked card programs and fintechs greater access to working capital.

The payments giant said lenders can combine VisaNet settlement records with blockchain transaction data to assess a payment business’s performance, evaluate credit risk and determine financing terms. The approach is aimed at bringing payment activity that traditionally sits within Visa’s network into blockchain-based credit markets.

Visa’s onchain analytics platform estimates that more than US$694 billion (AU$906 billion) in stablecoin loans have been processed through onchain lending protocols since 2020. The company sees an opportunity to extend that activity beyond crypto-native markets and toward businesses generating revenue through everyday payments.

“Trusted payment data and onchain technologies” can unlock new forms of liquidity, Visa’s global head of growth products and partnerships Rubail Birwadker said, allowing businesses to access capital in ways that are more transparent and programmable.

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Early Testing Underway

Credit Coop is an early test case, providing working capital and settlement financing to stablecoin-linked card programs through smart contracts and Visa payment data.

The financing is based on settlement receivables – the funds a payment business is due to receive. Rather than relying solely on conventional underwriting, lenders can use those future payment flows as part of the credit assessment, with repayments collected from incoming settlement funds.

According to Visa, Credit Coop’s model has financed more than US$2.5 billion (AU$.34 billion) in cumulative settlement volume since 2023, without defaults across participating facilities. More than 3,000 borrowing events and 9,000 repayments have also been processed through the system.

Substantial Stablecoin Growth

The initiative comes as Visa expands its broader stablecoin infrastructure. Stablecoin payment volume across more than 160 card programs has risen nearly 200% year over year, while settlement activity has climbed to an annualised rate of more than US$20 billion (AU$27.6 billion).

Visa has increasingly positioned stablecoins as more than a crypto payment tool, arguing that blockchain infrastructure could eventually support a wider range of financial services. Bringing settlement data into onchain lending represents another step in that direction, potentially linking payment activity directly to the credit markets that finance it.

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