Visa Reports Tenfold Increase In Stablecoin Settlements

Mastercard (MA) shares rose 4.49% after reporting Q3 EPS of $5.31 and revenue of $9.81B, beating estimates. Visa (V) gained 2.46% on analyst price target increases. American Express (AXP) rose 1.92% in sympathy. MA and V have Strong Buy ratings, AXP has Moderate Buy.

Visa has received approval to process domestic payments in China. However, competing with established players like Alipay and WeChat Pay poses significant challenges, according to Bhavya Patel.

Visa received approval from China's central bank to prepare for domestic card clearing, a process that may take up to a year. Visa reported Q4 net revenue of $12.1B, up 13%, and full-year revenue of $45.9B, up 15%. The company must still apply for and receive a clearing license to operate in China's domestic market, where competitors like UnionPay, Alipay, and WeChat Pay are already established.

Visa reported a $25 billion annualized run rate for stablecoin settlements, a 10x increase year-over-year. The company also disclosed quarterly net revenue of $12.1 billion, up 13%, and full-year revenue of $45.9 billion, up 15%. Visa supports 10 blockchains and five stablecoins, with over 225 stablecoin-linked card programs.

Visa reported fiscal 2026 revenue of $46 billion, up 15% YoY. Growth drivers included value-added services (20%+ growth), client contract renewals (25% of payment volume), and stablecoin settlement ($25B annualized volume). Management expects continued momentum in these areas and will focus on trust as a growth vector. Cross-border travel and e-commerce spending also contributed to growth.

Visa's annualized stablecoin settlement pace exceeded $25 billion, up 10x year-over-year, while its stablecoin-linked card programs surpassed 225, according to CEO Ryan McInerney. The growth reflects increased activity in settlement and card usage across 10 blockchains and 50+ countries.