Visa Direct launches USDC payouts for creators: Faster cross-border crypto payments explained

Introduction

Visa announced a new Visa Direct pilot that lets businesses fund payouts in fiat while recipients opt to receive funds in USD-backed stablecoins like USDC, enabling near-instant, borderless transfers to on-chain wallets. Revealed at Web Summit and expanded from a SIBOS 2025 pilot, the initiative targets faster, more flexible cross-border payments and financial inclusion in regions with currency volatility or limited banking access. Visa frames this as a step toward universal, minutes‑level access to money for global participants in the digital economy.

The creator economy and gig workers stand to benefit most, with Visa citing its 2025 Creator Economy Report indicating 57% of creators prefer digital and blockchain-based payment methods for instant access to earnings. By integrating stablecoin payouts, marketplaces, freelancers, and digital brands gain faster settlements, improved cash flow, and greater transparency—key for scaling global commerce. The pilot underscores Visa’s broader strategy to modernize money movement with programmable, on-chain settlement rails.

Visa’s focus on USDC reflects shifting market dynamics: USDC briefly surpassed Tether (USDT) in transaction volume in October before USDT reclaimed the lead, signaling a competitive stablecoin landscape. Initial partnerships will be limited, with broader expansion slated for late 2026 as client demand and regulatory clarity grow.

Background

Visa has launched a pilot that lets businesses fund payouts in fiat currency while recipients choose to receive them in USD-backed stablecoins like USDC, delivered directly to on-chain wallets via Visa Direct. Announced at Web Summit and building on initiatives previewed at SIBOS 2025, the move aims to make cross-border payments faster, more reliable, and more accessible—especially for the creator economy, gig workers, and marketplaces operating in regions with currency volatility or limited banking access. As Visa’s Chris Newkirk put it, the goal is “universal access to money in minutes—not days.”

This article explains how the pilot works, why stablecoins like USDC matter, who benefits, and what to watch as the program expands. It also provides context from outside sources on stablecoin adoption, regulation, and market dynamics to help you understand the broader implications for Web3 payments and the digital economy.

Key terms and concepts

• Stablecoin: A type of cryptocurrency pegged to a stable asset (often the U.S. dollar) to minimize price volatility. USDC and USDT are the two largest USD-backed stablecoins. See overviews by the Federal Reserve Board and BIS for financial-stability perspectives.

• USDC (USD Coin): A dollar-pegged stablecoin managed by Centre (Circle is the primary issuer). Known for strong transparency disclosures and U.S.-based regulatory engagement. Circle publishes monthly attestation reports on reserves.

• On-chain wallet: A crypto wallet that holds digital assets and can receive transfers on a public blockchain (e.g., Ethereum). Users control funds via private keys.

• Visa Direct: Visa’s payout network that enables near real-time push payments. The stablecoin pilot extends Visa Direct’s rails to on-chain destinations.

How Visa’s stablecoin payout pilot works

• Funding in fiat, settlement in stablecoin: Businesses initiate payouts in traditional currency. Recipients choose to receive funds in a USD-backed stablecoin, such as USDC, to a compatible on-chain wallet.

• Speed and reach: Stablecoin rails can move value across borders in minutes and operate 24/7, reducing delays from correspondent banking and cut-off times.

• Programmability and transparency: On-chain transfers are trackable on public ledgers, which can improve reconciliation and auditability for businesses and platforms.

• Pilot scope and timeline: Visa is starting with select partners and plans a broader rollout in late 2026, aligning with client demand and evolving regulations. 

For a sense of Visa’s broader crypto work, the company has previously piloted USDC settlement with partners like Crypto.com and explored account abstraction and gasless payments on Ethereum testnets. 

Why this matters for the creator economy and gig work

• Instant access to earnings: According to Visa’s 2025 Creator Economy findings cited by AMBCrypto, 57% of creators prefer digital and blockchain-based methods for faster payouts. Faster access improves cash flow for independent workers and small businesses.

• Borderless payments: Stablecoin payouts reduce friction for creators and freelancers working with global marketplaces, removing currency conversion delays and high cross-border fees common with traditional rails.

• Financial inclusion: In underbanked regions, on-chain wallets can be easier to access than bank accounts, enabling global platforms to pay more participants, more quickly.

• Platform benefits: Marketplaces gain programmable, transparent payouts with fewer intermediaries, potentially lowering operational costs and payment failure rates.

Outside context: Cross-border payment pain points—fees, speed, transparency—are well documented by the World Bank Remittance Prices Worldwide database and BIS analyses. Stablecoin transfers often settle faster and cheaper than traditional remittances, especially for small amounts, though user experience and compliance remain critical.

USDC vs. USDT: Market dynamics and regulatory posture

AMBCrypto notes USDC briefly surpassed USDT in transaction volume in October before USDT regained the lead—illustrating a competitive, shifting marketplace. Both are large-cap, dollar-pegged stablecoins, but they differ in governance and disclosures:

• USDC (Circle): Monthly attestations, U.S.-focused regulatory engagement, and a strong institutional push. (Circle Reports)

• USDT (Tether): The largest by market cap and liquidity; has faced questions historically about reserves but now provides regular attestations. (Tether Transparency)

Regulatory landscape: The U.S. House has advanced stablecoin legislation (e.g., the Clarity for Payment Stablecoins Act draft), several jurisdictions (EU’s MiCA, Singapore’s framework) are implementing rules for issuers, and global bodies like the Financial Stability Board have issued recommendations. Regulatory clarity is a key driver of enterprise adoption.

Risks and considerations

• Custody and key management: Receiving funds to an on-chain wallet requires secure handling of private keys. Managed wallets and MPC solutions can reduce user friction but add platform complexity.

• Compliance: KYC/AML, sanctions screening, and travel rule obligations apply to crypto payouts in many jurisdictions. Enterprises need robust compliance tooling and data partners.

• Volatility and peg risk: Fiat‑backed stablecoins aim for price stability, but users should understand issuer risk, reserve composition, and redemption terms. Attestations are not audits.

• FX and tax: Recipients may still face fiat conversion steps for local spending and tax reporting on crypto transactions, depending on jurisdiction.

For an enterprise checklist, see resources from FATF on virtual assets and the FSB’s recommendations.

Who stands to benefit

• Creators and freelancers: Faster, predictable payouts; less dependency on local banking hours; optionality to hold USD value on-chain.

• Global marketplaces: Programmable disbursements, clearer reconciliation, and potential cost savings on cross-border payouts.

• Emerging markets: A more accessible route to receive USD-equivalent value where dollar accounts are restricted or banking access is limited.

What to watch next

• Expansion timeline and partners: Visa plans broader expansion in 2026 after a select-partner pilot phase.

• Network and chain support: Which blockchains and wallet types are supported will shape user experience, fees, and security.

• Regulatory clarity: Stablecoin-specific rules (MiCA in the EU, potential U.S. legislation) will influence issuer selection and rollout speed.

• Interoperability: Efforts like Chainlink’s CCIP, Circle’s CCTP, and cross-chain messaging standards could improve stablecoin mobility across ecosystems, benefiting payouts at scale. (Chainlink CCIP, Circle CCTP)

Bottom line

Visa’s stablecoin payout pilot is a meaningful step toward faster, borderless, and more inclusive digital payments. By allowing businesses to fund in fiat while recipients choose USDC to on-chain wallets, Visa connects traditional finance to Web3 rails in a way that’s pragmatic for creators, freelancers, and global marketplaces. As regulations mature and infrastructure improves, stablecoin-enabled payouts could become a mainstream option for the digital economy.