Visa says more businesses are paying with digital dollar coins

Visa says more businesses are paying with stablecoins, which are digital coins tied to the US dollar. Nearly 17% of stablecoin-linked card volume now runs through business and commercial programs, according to the company's latest data. Visa also says payments on these programs are up nearly 200% in a year.

What changed

Visa supports over 160 stablecoin-linked card programs. Payments volume on those programs rose nearly 200% year over year. The material does not say how large that volume is in dollars.

A stablecoin is a type of cryptocurrency pegged to a reserve asset, such as the US dollar. The goal is to limit price swings, so the coin can be used for payments, managing company cash and sending money across borders.

Where businesses use them

Studies estimate annual stablecoin payments volume at $401 billion to $527 billion. Service fees, payroll and supplier payments lead the way. Supporters point to a few possible gains:

• Shorter wait times for payments to arrive
• Lower costs than traditional banking steps
• Better handling of cash flow for companies with tight margins

Why overseas payments stand out

In business-to-business payments, 43% of stablecoin volume is cross-border. That includes paying suppliers in other countries. For small firms that trade internationally, this could mean lower currency exchange and transaction fees.

Mark Nelsen, Visa's Global Head of Product, Commercial & Money Movement Solutions, said businesses "aren't looking for new payment technologies for the sake of innovation. They're looking for trusted, reliable ways to move money."

Risks to weigh

Rules around cryptocurrencies are still unsettled, and they can differ by region. Owners also need to understand how stablecoins fit with the banking tools they already use. Switching may take a learning curve, plus spending on staff training and system updates.

What to do

A business that pays overseas suppliers can look at whether stablecoins fit its needs. The material advises doing careful research first. It also suggests talking with a financial advisor to check that any move works for daily operations and follows the rules that apply locally.