Visa makes onchain lending move

Visa is launching a new initiative to bridge the gap between traditional credit card processing and blockchain-based lending. For retailers and fintech operators, this move aims to provide faster access to working capital by using settlement data to trigger automated loans. Essentially, Visa is looking to use its massive data pool to help lenders assess risk and deploy funds more efficiently to businesses that utilize stablecoin-linked card programs. For the average merchant, this represents the next evolution of 'embedded finance.' Instead of waiting days for card settlements to clear or applying for traditional bank loans with piles of paperwork, this infrastructure allows for real-time lending decisions based on your actual transaction volume. While the program is currently focused on fintechs and card issuers, the underlying technology will eventually trickle down to the merchant level. It will enable more flexible credit lines that expand and contract automatically based on your daily sales data. This could be a game-changer for businesses that struggle with seasonal cash flow or those operating in high-growth phases where traditional credit limits feel restrictive.

Source: Finextra — Lending

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