How Card Issuers like Gnosis Pay can settle with Visa using stablecoins

Overview

Consumers, especially younger demographics, are increasingly interested in using digital assets for payments and investments. Early adoption of blockchain technology can set card issuers apart from competitors. This case study explores how Monerium enables Card Issuers like Gnosis Pay to streamline their onchain card payment processing while maintaining compliance.

The problem

Card issuers face unique challenges when integrating blockchain-based solutions. Without Monerium, they would rely on unauthorized stablecoins or volatile cryptocurrencies, often requiring intermediary crypto exchanges to handle conversions. This approach adds complexity, slows settlement times, and incurs significant costs.

The solution

Monerium eliminates these barriers by offering authorized euros (EURe) that function both on and off-chain. By leveraging Monerium IBANs, all parties transact in their name, with instant and cost-free transfers. This seamless setup enables issuers to integrate blockchain technology into their existing payment ecosystems without disruption.

How it works

For Cardholders

Onboarding:

• Using the Monerium API, Gnosis Pay owns the onboarding experience.
• Cardholders sign up, without requiring multiple KYC checks or leaving the Gnosis Pay application.
• Gnosis Pay wallets are powered by Safe and directly connected to a personal Monerium IBAN.

Top-up:

• Cardholders transfer EUR via SEPA to their Monerium IBAN.
• The transfer is instant, free of charge, and appears as a standard bank transfer in their own name.
• Monerium automatically mints EURe (stablecoins) in the user's Gnosis Pay wallet upon receiving the EUR and safeguards the funds according to emoney laws and regulations. Funds are collateralized 102% as bank deposits or in qualifying high-quality and liquid securities.
• Cardholders can also exchange their crypto for EURe and top up their cards without requiring a single bank transfer.

Spending:

• Users can spend their EURe directly with their Gnosis Pay Visa card at merchants worldwide.
• Alternatively, they can invest and earn yield with EURe in the DeFi ecosystem.

For Card Issuers

Onchain Settlement:

• When a cardholder spends EURe with their Visa card, the card issuer verifies the wallet balance onchain in real-time.
• Gnosis Pay wallets are powered by Safe, allowing the issuer to trigger an onchain transfer from the cardholder's wallet to their wallet to facilitate settlement with Visa.

Visa Settlement:

• The issuer can then settle directly with Visa by sending EUR with their own Monerium IBAN to any specified bank account, instantly and free of charge.

Why choose Monerium?

Proven scale and adoption

Monerium has processed over 2 billion EURe onchain, making it the most widely used EUR stablecoin. Our infrastructure is built to handle operations at scale, ensuring reliability for high-volume transactions.

Integrated tech and regulatory stack

With Monerium, you're not just getting cutting-edge technology—you're also leveraging a fully compliant regulatory framework. As an authorized Electronic Money Institution (EMI), we take care of the regulatory burden, including KYC/AML processes, so you can focus on growing your business.

Easy to get started and complete within 4 weeks

It's simple to begin integrating Monerium. The average implementation time is 4 weeks. Our documentation at monerium.dev provides everything you need to get started and go live in no time.