Visa and Yellow Card Boost Adoption of Stablecoins in Developing Countries

Visa and Yellow Card Boost Adoption of Stablecoins in Developing Countries

In a groundbreaking move, Visa, the global leader in digital payments, and Yellow Card, a leading stablecoin provider, have announced a strategic partnership aimed at transforming cross-border payments in emerging markets, particularly in Africa and the broader CEMEA region (Central and Eastern Europe, Middle East, and Africa).

The collaboration between Visa and Yellow Card seeks to leverage the potential of stablecoins to significantly enhance the speed, cost-effectiveness, and accessibility of cross-border transactions. Godfrey Sullivan, Senior Vice President and Head of Product and Solution for CEMEA at Visa, expressed his excitement about the partnership, stating, "Every institution that moves money will need a stablecoin strategy."

The partnership offers several key use cases and benefits:

1. Cross-border remittances and payments: The partnership enables businesses and individuals to send and receive money across borders using USD-backed stablecoins like USDC. This is particularly valuable for sending remittances, which form a significant part of transaction volume in Sub-Saharan Africa (SSA) and other emerging regions.

2. Business treasury and liquidity management: Companies can hold and transfer dollars digitally via stablecoins, improving liquidity and treasury operations by making funds more accessible and transferable across borders in real time.

3. Visa Direct integration: Testing stablecoin payments on Visa Direct allows businesses to send stablecoin funds directly to customers’ linked bank accounts or debit/credit cards, expanding digital dollar use in everyday transactions.

4. Financial inclusion and digital dollar access: By leveraging Yellow Card's presence in over 20 African countries, the partnership fosters broader access to digital dollars for individuals and businesses that traditionally face hurdles accessing foreign currency.

The benefits of this partnership are numerous. Stablecoin settlements can reduce cross-border transaction costs by up to 80% compared to traditional methods, while blockchain-based stablecoin payments enable real-time or near-instant settlements 24/7. The use of stablecoins diminishes dependence on physical U.S. dollars or conventional FX infrastructure, which can be limited or costly in certain emerging markets.

The partnership also aims to streamline payment routes and remittance flows, especially where access to U.S. dollars is constrained, enhancing liquidity and operational efficiency. Visa’s extensive global banking network combined with Yellow Card’s local expertise opens pathways for connecting local financial institutions with blockchain-based payment solutions, enabling broader adoption.

Easier, cheaper, and quicker cross-border payments support commerce and financial inclusion, aiding economic growth in underserved regions. In regions like Sub-Saharan Africa, stablecoin remittances reached at least $500 billion monthly between 2022 and 2024, demonstrating significant demand for digital dollar transactions. Countries like Nigeria and Ethiopia have already seen accelerated adoption of stablecoins for payments and remittances, highlighting the potential for scale.

Chris Maurice, Co-Founder and CEO of Yellow Card, expressed his excitement about partnering with Visa to realise the potential of stablecoin technology in emerging economies. He stated that traditional payment companies are actively considering the need for a stablecoin strategy. Sullivan, in response, stated that Visa stands ready to help partners navigate the transformation, bringing scale, trust, and innovation needed for the next generation of global payments.

The partnership between Visa and Yellow Card represents a strategic leap towards integrating traditional payment networks with blockchain-powered stablecoins, aiming to modernise and democratise cross-border payments in emerging markets.

1. The strategic partnership between Visa and Yellow Card, a leading stablecoin provider, will utilize AI-driven technology to significantly transform cross-border transactions in the digital ecosystem.
2. The collaboration seeks to enhance innovation in the market, offering businesses and individuals the opportunity to send and receive money across borders using USD-backed stablecoins like USDC.
3. The use of stablecoins will reduce cross-border transaction costs by up to 80% compared to traditional methods, offering a more cost-effective infrastructure for business operations.
4. The partnership will foster financial inclusion and digital dollar access, making the technology more accessible to individuals and businesses in underserved regions like Africa.
5. The integration of stablecoins within the Visa network will democratize cross-border payments in emerging markets, supporting economic growth, commerce, and the broader business landscape.

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