Instead of relying on regular bank settlement processes, Rain now handles all transactions for its Visa cards using USDC stablecoin.
Rain, a global card-issuing platform for stablecoins, has joined Visa’s pilot program to test using stablecoins (starting with USDC) for settling payments.
The partners aim to bring credit card payment settlement fully on-chain, leveraging capabilities of so-called digital dollars – crypto assets tied to the value of stable fiat like USD. By doing this, Rain can now settle payments with Visa on any day of the week, including weekends and holidays, 24/7, making the process faster and more flexible.
Rain issues both physical and virtual Visa cards linked directly to stablecoin balances. It enables businesses and individuals to use stablecoins for everyday transactions anywhere Visa is accepted. Such a mode of use is very convenient to consumers as digital assets do not need to be converted into traditional fiat currencies beforehand.
To achieve that result, Rain has developed a proprietary settlement system that tokenises credit card receivables and processes settlements entirely on-chain. This infrastructure enhances capital efficiency and reduces the need for traditional banking intermediaries. Besides, by leveraging smart contracts, Rain ensures automated and transparent settlement processes.
To maximise flexibility and interoperability of digital transactions, Rain supports multiple blockchain networks, including Ethereum, Solana and Polygon. This multi-chain approach allows users to transact using various stablecoins across different platforms, catering to a broad spectrum of digital asset holders. The firm also offers customised card programs tailored to specific markets. For instance, in Latin America, Rain has partnered with local fintech firms to provide crypto-funded payment cards, facilitating cross-border payments and offering financial services in regions with limited banking infrastructure.
In partnership with Visa, Rain offers the behind-the-scenes tools, like APIs, compliance systems, and payment processing technology, that help fintech companies and digital wallets create and launch payment cards connected to stablecoins. When someone uses a Rain-issued Visa card to pay, Visa still processes the payment with the merchant’s bank, but Rain uses stablecoins to handle the settlement automatically on the blockchain, including approval and settlement of payments.
Rain has fully converted its credit card receivables into digital form by tokenising them, which makes managing money that customers owe to a credit card issuer more efficient and transparent. The company also introduced a world-first system where it uses stablecoins to borrow money for settling credit card payments. It works with lenders who provide stablecoins and automatically repays them using smart contracts. This setup lowers the overall cost of credit programs for both consumers and businesses, making credit more accessible in regions with low financial inclusion levels. At the same time, it gives lenders better security and faster repayments.
Rain is also working on new ways to make stablecoins more useful. This includes building asset-agnostic technology that can handle different types of assets and control access on the blockchain, allowing both domestic and international credit systems to operate fully on-chain, without relying on traditional banks.
“Moving money across borders has always been complex, but blockchain technology and stablecoins are helping change that,” said Rubail Birwadker, Head of Growth Products and Partnerships, Visa. “Our work with Rain to help bring payments onchain and enable seven-day settlement is a big step toward helping to simplify global payments.”
As stablecoins are getting closer to mainstream adoption, global payment companies are rushing to provide adequate infrastructure and incentives for their daily use. In recent weeks, Mastercard introduced new end-to-end capabilities that can make stablecoin payments as seamless as everyday fiat transactions, while PayPal announced its plans to offer rewards to users for their holdings of its PYUSD stablecoin, which they can exchange for fiat currency, send to other customers, make international transfers, or utilise for purchases with PayPal Checkout.
