Visa and BVNK Bring Stablecoin Payouts to Global Payments

Visa Inc. has partnered with stablecoin infrastructure firm BVNK to bring stablecoin payouts to global payments through pilot programs. The collaboration aims to provide businesses and consumers with more flexibility in how and when they send and receive funds. This move is part of a broader shift in the payments industry toward digital asset-based solutions.

Polygon Labs is also making strides in the stablecoin space, acquiring Coinme and Sequence for more than $250 million. The acquisitions are expected to accelerate the company's goal of becoming a regulated U.S. payments player. Coinme allows users to convert cash to crypto and has backing from industry leaders like Circle, while Sequence offers blockchain infrastructure.

The stablecoin market is growing rapidly, with firms like Visa and Polygon vying for dominance. However, the crowded landscape may make it harder for any one company to stand out. Collaborative efforts, such as Polygon's acquisition strategy, highlight a trend of strategic partnerships rather than direct competition in the sector.

Why Did This Happen?

Polygon's strategy is centered on partnerships and expansion in stablecoin-based transactions. The firm is initially targeting B2B payments before shifting to consumer services, reflecting a cautious yet ambitious approach. Its CEO emphasized the long-term potential of digital payments and the possibility that traditional card networks may evolve or be replaced.

Visa's collaboration with BVNK is similarly aimed at expanding the use case of stablecoins in global transactions. The rollout will initially focus on markets with high demand for digital asset payments, followed by global expansion based on customer needs. Both companies are positioning themselves to capitalize on the growing infrastructure for stablecoin use.

How Did Markets React?

Analysts have maintained a positive outlook on Visa, with UBS reiterating its Buy rating and keeping a price target of $425.00. The firm expects Visa's net revenue growth to remain strong in 2026, even without support from OBBBA-related spending benefits. The stock is currently trading near $326.12, with a market cap of $626 billion.

Meanwhile, investors are closely watching the potential impact of policy shifts. President Donald Trump has pushed for a 10% cap on credit card interest rates, which could affect consumer spending and card issuer profits. While Visa's revenue comes from transaction fees rather than interest, ripple effects from tighter credit conditions or reduced rewards could influence spending behavior.

What Are Analysts Watching Next?

Visa's upcoming shareholder meeting on January 27 will also draw attention, with proposals related to governance and AI-related risks on the agenda. Additionally, analysts are monitoring how banks and payment networks adapt to regulatory pressures and evolving consumer behavior.

Polygon's CEO has acknowledged that while the short-term focus is on collaboration, the long-term outcome—whether cards remain relevant—remains uncertain. This uncertainty adds to the strategic importance of stablecoin infrastructure and partnerships.

The broader payment ecosystem is evolving rapidly, with digital assets, regulatory shifts, and market competition shaping the trajectory of major players like Visa and Polygon. Both companies are investing in infrastructure and partnerships to stay competitive in a rapidly changing landscape.