Visa's new stablecoin pilot will transform the way freelancers

• Visa Direct integration is targeted at global platforms that must pay users in different countries.

• The company has described stablecoin payments as an ideal solution for freelancers and gig workers.

Visa is testing a new stablecoin payment solution that allows businesses to transfer funds directly into fiat currency.

Stablecoins for the Digital Economy

Global platforms that must pay users in different countries present one of the most attractive use cases for stablecoins.

Online marketplace operators and gig economy firms are often overlooked as payment companies. Yet, payments are at the heart of digital platform business models.

From Alibaba to Uber, the most successful platforms have built their own payment systems, collecting money from customers on one hand and distributing payments to vendors or service providers on the other.

Traditional, inter-bank payment systems pose a hassle for operators transferring money across borders. In some cases, payment processing can take days or weeks.

In contrast, stablecoin payments are settled in seconds.

Visa's Stablecoin Campaign

Visa's new stablecoin integration will be available to businesses using Visa Direct, the company's real-time payment network.

Companies like Uber, Lyft, and Airbnb already use Visa Direct for direct card payments. Now, they will also be able to offer recipients the option to pay in stablecoins.

Chris Newkirk, President of Commercial and Money Movement Solutions at Visa, said, "The goal of introducing stablecoin payments is to enable universal access to money, for anyone, anywhere in the world, in minutes, not days."

In a statement shared with CCN, he added, "Whether it's a creator building a digital brand, a business reaching new global markets, or a freelancer working across borders, everyone benefits from faster and more flexible money movement."

A Boon for Emerging Markets

Stablecoin payments may make the most sense in emerging markets.

For platform operators, stablecoins promise more streamlined treasury management and reduced risk in volatile foreign exchange markets.

On the other hand, recipients gain access to a stable store of value, which is in high demand in the Global South. (Visa's solution focuses on a dollar-backed stablecoin, called USDC in the announcement.)

In countries with high rates of financial exclusion, stablecoins could also provide new opportunities for unbanked workers.

The post "Visa's New Stablecoin Pilot Will Transform the Way Freelancers, Uber Drivers, and Global Gig Workers Get Paid" was first published on ccn.com.