The Onchain Infrastructure Battle Among Cross-Border Payment Giants: Who Will Win the Settlement War?

#Visa #Mastercard #PayPal

Do you know which sector is one of the most profitable in global finance?

Cross-border payments is definitely among them. Representative companies like Visa, Mastercard, and PayPal — unlike general enterprises, governments, or institutions — have set their sights on infrastructure construction for onchain payments in the crypto space, and the competition between them has reached a boiling point.

Recently, Visa announced support for multiple stablecoins and major public chains (including USDC, PYUSD, EURC, and Ethereum, Solana, Stellar, Avalanche, etc.). This is not just business expansion — it signals a convergence between the payment world and the onchain world.

Taking this opportunity, let’s dive into this ongoing war for infrastructure dominance.

Why Are Payment Giants “Going Onchain” Now?

1. The Network Is Being Rebuilt

For a long time, Visa and Mastercard have dominated the global payments market, accounting for 39% and 24% respectively. Their profit margins are incredibly high (67% and 57%), relying on centralized clearing networks to control global payment settlements. But the rise of Web3 is now challenging this model:

Stablecoins enable near-instant settlement
Blockchains bypass multi-layered intermediaries
Users and merchants can complete transactions without traditional banks

In this context, payment giants face a dilemma: Either get sidelined by onchain systems, or proactively transform into onchain settlement hubs.

2. Multi-chain + Multi-coin Is the Key to Winning All

The crypto world is highly fragmented:

Users are scattered across Ethereum, Solana, Stellar, Avalanche, etc.
Stablecoins vary in ecosystem value: USDC, PYUSD, EURC all have their use cases.

If Visa or Mastercard only supports a few chains or coins, they’ll fail to cover all use cases and miss the chance to be the standard “highway” for onchain payments. So they must gradually expand coverage and develop comprehensive multi-chain + multi-coin compatibility.

How Are the Three Giants Building Onchain Infrastructure?

1. Visa: Expanding Stablecoin and Multichain Support

Visa recently announced support for USDG by Paxos, PYUSD by PayPal, and EURC by Circle, while expanding its network from Ethereum and Solana to Stellar and Avalanche. This means:

Visa doesn’t just support USD stablecoins — it now includes Euro stablecoins
It offers settlement services not only for Ethereum users but also for Stellar and Avalanche
Visa is transitioning from centralized clearing to onchain settlement

This is a strategic-level move: Visa is evolving into a new onchain payment gateway with multi-chain compatibility.

2. Mastercard: Full-Stack Onchain Build from Identity to Settlement

Mastercard made moves earlier than Visa:

Launched Crypto Credential, a blockchain identity system granting addresses onchain credit
Built a multi-chain prototype platform to test interoperability between CBDCs and commercial bank stablecoins
Partnered with Fireblocks, Paxos, Circle to explore custody, cross-border transfers, and onchain settlements
Offers direct crypto settlement for merchants through onchain clearing

Unlike Visa’s full embrace of stablecoins, Mastercard focuses more on foundational infrastructure: onchain identity + settlement platform + cross-chain interoperability.

3. Stripe: Developer-Friendly Middleware for Payments

Stripe acts more like a Web3 API provider, focusing on merchant and developer ends:

In 2023, launched USDC Payment API, allowing merchants to receive, convert, and withdraw USDC
Offers custodial wallet services, lowering entry barriers for smaller Web3 businesses
Supports fiat ↔ stablecoin conversion
Builds on the core trio: developer-friendliness + merchant convenience + KYC compliance

Stripe isn’t an issuer, but serves as a critical middleware bridge connecting traditional and crypto merchants.

Why Is This Battle So Critical?

1. One Chain, One Coin Is No Longer Enough

If all you support is Ethereum + USDC, you alienate users on Stellar, Avalanche, or those using PYUSD. To be a cross-chain payment platform, giants must support a wider range of chains and stablecoins — or risk irrelevance. Visa’s move is both forward-looking and necessary.

2. Stablecoins Are the Base Asset, Chains Are the Conveyor Belts

In onchain trading, stablecoins are the settlement currency. Whoever provides faster, cheaper, more seamless stablecoin settlement becomes the infrastructure provider. This isn’t just about token speculation — it’s about real money flowing across chains.

3. Identity + Settlement = Control

Mastercard’s Crypto Credential enables address verification, reducing scams and transaction errors. This is trust infrastructure going onchain. In a future where both identity and settlement are onchain, those controlling the nodes and identity systems will hold the power.

4. Merchant + Developer Integration: Stripe’s Playbook

Most Web3 merchants don’t understand crypto and don’t want to self-custody wallets or manage DeFi. Stripe’s stablecoin API bundles blockchain convenience for merchants. This model is especially friendly for global small merchants.

From users, platforms, merchants, to developers — if these payment giants control this stack, they’re no longer “old-school payment companies,” but onchain ecosystem architects.

Any Transformation Comes With Challenges

1. Compliance and Regulatory Risk

Stablecoin regulation remains in flux. Europe and the U.S. are still defining legal frameworks. Tighter regulation could restrict Visa and Mastercard’s onchain ambitions.

2. Security Challenges Across Chains

Supporting multiple chains and tokens adds complexity. A single bug in conversion logic or wallet infrastructure could trigger major risks.
Security costs are very high.

3. Potential Conflicts with Legacy Chain Ecosystems

Ethereum, Solana, Avalanche are already home to countless DeFi projects. Some may resist traditional finance entering the settlement layer. How to design compliant governance remains unclear.

In Summary: The New Battlefield of the Payment World Has Opened

Visa is transitioning from centralized clearing to a multi-chain compatible settlement platform
Mastercard is evolving into a provider of onchain identity + settlement infrastructure
Stripe is becoming the back-end enabler for Web3 merchant access
PayPal is directly issuing its own stablecoin, deeply integrating with onchain payments

While their strategies differ, they share the same goal: To seize control of onchain infrastructure.To push the payment world from centralized to decentralized, while still leveraging brand and trust advantages at the entry points.