Card settlement is the final transfer of funds from a customer’s bank to a merchant’s bank after a card transaction. This process follows authorization and clearing, representing the irreversible movement of money between financial institutions involved in a payment. In the context of digital assets, card settlement can involve converting cryptocurrency to fiat currency to complete a merchant payment. The efficiency and speed of this process are vital for liquidity management and operational costs for businesses accepting digital payments.
Context
The speed and cost of card settlement are critical factors for merchants and payment processors in both traditional and crypto-enabled commerce. Innovations in blockchain technology are exploring ways to accelerate this process, potentially bypassing legacy systems and reducing intermediary fees. News regarding advancements in real-time settlement or new integrations between crypto platforms and payment networks remains a significant area of interest.
Integrating a regulated stablecoin on a public ledger enables continuous, real-time card settlement, significantly reducing counterparty risk and operational float for all participants.
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