Rain and Visa Join Forces to Accelerate Onchain Credit Card Adoption

Transforming Finance: Rain and Visa Collaborate on Onchain Solutions

In a groundbreaking development for the financial technology landscape, Rain, a global platform dedicated to the issuance of Stablecoin-backed cards, has announced a strategic partnership with Visa. This collaboration is set to usher in a new era of onchain financing, allowing for seamless transactions that operate 24/7. Rain's commitment to innovation and Visa's extensive payment network are paving the way for a more efficient financial future.

Joining the Visa Pilot Program

As part of this collaboration, Rain has officially joined Visa's pilot program aimed at expanding Stablecoin settlements. The company has fully tokenized its credit card receivables and transitioned all billing processes for its Visa cards to USDC (USD Coin), a widely accepted Stablecoin. This transformative approach empowers Rain to enable transactions continuously throughout the year, breaking the boundaries of traditional banking hours.

Enhancing Real-Time Payment Solutions

The backbone of Rain's innovative services includes a robust backend infrastructure equipped with APIs for compliance and settlement logic, which facilitates fintechs and wallets in developing and launching Stablecoin-based card programs. With the increasing demand for instantaneous global payments, Rain has experienced significant momentum among partners eager to issue and utilize onchain cards, thus settling transactions in Stablecoins.

Rain’s proprietary settlement stack integrates all authorization logic directly onto the blockchain, allowing Visa transactions to interoperate across multiple blockchains. This means that each time a user makes a purchase with a Rain-issued Visa card, Visa continues its traditional settlement process with the merchant's acquirer, only now enhanced by the usage of Stablecoins. This capability signifies a leap forward in efficiency, bulk settlement management, and operational transparency.

Tokenization and Its Benefits

The complete tokenization of credit card receivables on Rain's platform enables more efficient capital management, enhancing transparency throughout the financial system. This advancement allows fintech partners to accelerate their product launch timelines while providing consumers with access to digital payment experiences that span across borders.

One exciting aspect is Rain’s announcement of a novel approach to closed-loop financing using Stablecoin-backed credit card receivables. Through collaboration with a network of capital partners, Rain is able to extend loans in Stablecoins, simplifying the payment of credit card debts throughout their network. By structuring loans in this manner, Rain effectively reduces overall capital costs for both consumer and B2B credit programs while offering lenders premium collateral and automated repayments facilitated by smart contracts.

A Vision for the Future

According to Farooq Malik, the CEO and co-founder of Rain, “Our participation in Visa's USDC settlement program allows us to handle settlements every day of the week, all year round. The USDC settlement process boosts our capital efficiency and decreases the need for collateral while still providing our partners with high levels of protection.” This statement underscores Rain's ambition to set new standards for digital asset utilization within traditional finance.

Cooperation between Rain and Visa aims to simplify cross-border transactions, which have historically been complex. Rubail Birwadker, Head of Growth Products and Partnerships at Visa, remarked, “The integration of blockchain technology and Stablecoins is transforming the way we approach global payments.” This initiative by Rain and Visa signifies not only a leap in transaction capabilities but also reinforces the foundational principles of innovation and accessibility in finance.

Setting a New Standard

As a principal member of Visa, Rain's offerings provide access to over 150 million merchant locations where Visa is accepted, thereby fueling their mission to integrate blockchain technology into legacy financial infrastructures seamlessly. By utilizing Stablecoins for automated daily billing with the Visa network, Rain is positioned to enhance the usability and interoperability of digital assets for everyday scenarios.

Founded in 2021 by Farooq Malik and Charles Naut, Rain represents a transformative force in the financial services landscape with significant backing from notable venture capital firms such as Norwest Venture Partners and Lightspeed Venture Partners, among others. Their commitment towards evolving financial accessibility and operational efficiency lays the groundwork for a more inclusive financial future.

For more information, visit Rain.