In the ever-evolving landscape of fintech, Visa's recent partnership with Aquanow is a game-changer. Unlike many announcements of collaborations that fail to resonate with startups and small businesses, this one has the potential to truly redefine the way entrepreneurs, startups, and even freelancers approach international settlements. As someone deeply entrenched in the entrepreneurship and tech ecosystem, I, Violetta Bonenkamp, founder of several startups and advocate for innovative solutions, see this as a pivotal moment for global business.
Visa Teams Up with Aquanow: What It Means for CEMEA-Based Businesses
Visa's collaboration with Aquanow aims to bring faster, cheaper, and more efficient financial settlements using stablecoins, digital currencies tied to traditional fiat currencies like the US dollar. Their joint focus is set squarely on the Central and Eastern Europe, Middle East, and Africa (CEMEA) region, an area ripe for financial innovation.
For founders and business owners operating in emerging markets in CEMEA, where cross-border payments can be sluggish and costly due to antiquated banking systems, this could mark the dawn of a new era. With Visa and Aquanow integrating their infrastructures, transaction settlements will utilize the USD Coin (USDC) stablecoin, trimming not only transaction costs but dramatically reducing processing timelines.
What insights can budding entrepreneurs and small business owners glean from this development? Why does this matter for anyone running cross-border businesses or engaging in gig-based operations?
How Stablecoin Settlements Benefit Entrepreneurs and Business Owners
Here is a breakdown of how Visa and Aquanow’s partnership could impact entrepreneurs, freelancers, and startups in tangible ways:
1. Faster Settlements (Goodbye, Waiting Periods!)
Currently, cross-border payments can take 1-3 days or more to clear, largely dependent on the intermediary banks processing the transactions. With this new partnership:
- Stablecoin-enabled settlements can occur in real-time 24/7, bypassing delays around traditional banking hours and national holidays.
- Entrepreneurs can pay international contractors, freelancers, or suppliers on-demand, avoiding cash flow bottlenecks.
Statistically, 85% of businesses surveyed in the global payments sector cited “speed of transaction” as critical to competitive advantage. Imagine the time it saves when you only have to wait minutes instead of days!
2. Reduced Costs for Startups with Small Margins
Legacy systems like SWIFT come with hefty fees that take a big bite out of a small startup’s cash flow. Stablecoins lower these transactional charges because they bypass the multilayered fees associated with intermediary banks. Lower fees mean:
- More cash stays in your business.
- It’s easier to manage microtransactions, especially for freelancers or startups experimenting with lower-cost product tiers.
- Scaling internationally becomes feasible for earlier-stage businesses.
When running my startup, CADChain, these costs almost broke the model we were building. A solution like USDC settlements would have saved me countless headaches and euros.
3. Transparency is Finally Possible
If you’ve ever dealt with international banks, you know how murky fees or currency conversion rates can be. By leveraging blockchain technology:
- Entrepreneurs can have a crystal-clear record of payment, with no hidden costs or surprise overhead.
- Access to real-time tracking of money transfers aids in financial analysis and budgeting, crucial for fundraising or financial pitches.
How to Adapt to This New Landscape
It’s no longer a matter of if but when the integration of blockchain-backed financial services becomes ubiquitous. As entrepreneurs, we need to stay ahead of the curve. Start by asking yourself the following:
1. What is the cryptocurrency’s utility for your business?
Even if you don’t currently engage in cross-border trade, what percentage of customers, suppliers, or future business partners may want to perform transactions via stablecoins? Planning for scalable business models means being ready to integrate new methods, such as blockchain and stablecoins, that reduce overhead costs and grow scalability.
How to Leverage Stablecoin Payments
To tap into the advantages of services like Visa and Aquanow's stablecoin settlement, consider this "how-to" roadmap:
Step 1: Expand Your Payment Infrastructure
Many businesses limit themselves to traditional online payment gateways. Instead, consider fintech platforms that are already engaging in stablecoin payments or are likely to do so in the future.
Step 2: Prioritize Customer Trust
Stablecoins like USDC may sound complicated to your customers or team. Make education part of your company culture, explain to customers (and your team) how digital currencies are audited, and assure them of financial security. Transparency first!
Step 3: Consult With Experts
Navigating the shift to a decentralized financial landscape can be confusing. Seeking fintech advisors or consultants will help you to understand regulations, technical integrations, and how to implement blockchain.
Step 4: Pilot Stablecoin Payments
Not sure how it will work in your business model? Start at a small scale. Experiment with integrating USDC via Visa or platforms that allow easy onboarding and limited complications.
Step 5: Cultivate Partnerships
Just like Visa understood that Aquanow brought expertise in digital assets and blockchain infrastructure, look at how partnerships could empower your business with resources you wouldn’t develop in-house.
Mistakes Entrepreneurs Must Avoid
While this opportunity may seem promising, it’s important to proceed strategically:
- Neglecting Regulations: Different countries have varying approaches to stablecoins. In 2023, for instance, the EU introduced the MiCA (Markets in Crypto-Assets) regulation to manage digital assets. Not paying attention could lead to compliance issues.
- Lack of Customer Readiness: In some CEMEA regions, users might not yet trust stablecoin systems or could be unfamiliar with them. Roll out educational campaigns before implementing change.
- Ignoring Scalability: As with any fintech integration, ensure your systems can scale to meet long-term market demand.
Why Blockchain-Based Settlements Are the Future
Visa’s foray into stablecoins, coupled with the rise of competitors like Mastercard entering the stablecoin space, signals a race towards blockchain standardization in global payments. This creates opportunities for businesses, especially in underserved markets.
As Visa shared with Finextra, the move toward stablecoin-based payment rails isn’t just about efficiency. It’s about preparing the world for the “future of money movement.” Entrepreneurs should harness this technology now to improve global transactions for their businesses.
Conclusion
For entrepreneurs in CEMEA, Visa and Aquanow’s partnership represents more than just another innovation in global payments; it’s a lifeline. Emerging markets face unique challenges in scaling globally, and with digital stablecoin settlements, businesses of all sizes can thrive in the global arena without being bogged down by traditional payment inefficiencies.
As we build modern businesses, the future of payments will be a cornerstone of competitive strategy. Stay informed, adapt early, and don’t shy away from tools that enable global business. Just as this partnership between Visa and Aquanow aims to modernize payment solutions, you as a founder or freelancer must rethink how you operate in the global fintech ecosystem.
Remember: innovation waits for no one. Are you ready to be part of the financial revolution? Use stories like this as stepping stones to realize your potential in the new digital frontier.
FAQ
1. What is Visa's partnership with Aquanow about?
Visa has partnered with Aquanow to expand stablecoin settlement capabilities across the CEMEA region, leveraging USDC for faster, cheaper financial transactions. Learn more about Visa's partnership with Aquanow
2. How does this partnership benefit businesses in CEMEA?
The initiative offers streamlined cross-border payments by reducing transaction costs and settlement times, ideal for entrepreneurs and small businesses in emerging markets. Understand how Visa's partnership supports CEMEA businesses
3. What stablecoin is being used for settlement?
Visa uses USD Coin (USDC), a stablecoin pegged to the US dollar, for the settlement infrastructure integrated with Aquanow. Explore Visa's stablecoin choice
4. How can businesses leverage this new settlement system?
Businesses can adopt platforms supporting stablecoin payments, educate stakeholders, and pilot small-scale integrations before fully committing. Learn how businesses can leverage stablecoin payments
5. What role does Aquanow play in this collaboration?
Aquanow provides the digital asset infrastructure integrated into Visa's technology stack, enabling businesses to access blockchain-backed settlements. Discover Aquanow's contribution
6. Why did Visa choose CEMEA for the expansion?
CEMEA is a region where financial systems often lag in modernization, making it an ideal area for introducing faster, cost-efficient settlement methods. Learn why CEMEA is targeted
7. What challenges might businesses face during adoption?
Challenges include navigating regulations across different countries, building customer trust around stablecoins, and ensuring scalability of systems. Understand stablecoin adoption challenges
8. How does blockchain increase transparency for payments?
By using blockchain technology, transactions become more traceable, ensuring clarity around fees, exchange rates, and payment status. Learn how blockchain enhances transparency
9. Is this Visa's first engagement with stablecoins?
No, Visa started working with stablecoin settlements in 2023, initially piloting USDC for settlement obligations with remarkable success. Explore Visa’s stablecoin history
10. Which other players are entering the stablecoin payments market?
Competitors like Mastercard and American Express are also expanding into stablecoin-based transactions, signaling broader adoption across the fintech industry. Learn about stablecoin competition
About the Author
Violetta Bonenkamp, also known as MeanCEO, is an experienced startup founder with an impressive educational background including an MBA and four other higher education degrees. She has over 20 years of work experience across multiple countries, including 5 years as a solopreneur and serial entrepreneur. Throughout her startup experience she has applied for multiple startup grants at the EU level, in the Netherlands and Malta, and her startups received quite a few of those. She’s been living, studying and working in many countries around the globe and her extensive multicultural experience has influenced her immensely.
Violetta Bonenkamp's expertise in CAD sector, IP protection and blockchain
Violetta Bonenkamp is recognized as a multidisciplinary expert with significant achievements in the CAD sector, intellectual property (IP) protection, and blockchain technology.
CAD Sector:
- Violetta is the CEO and co-founder of CADChain, a deep tech startup focused on developing IP management software specifically for CAD (Computer-Aided Design) data. CADChain addresses the lack of industry standards for CAD data protection and sharing, using innovative technology to secure and manage design data.
- She has led the company since its inception in 2018, overseeing R&D, PR, and business development, and driving the creation of products for platforms such as Autodesk Inventor, Blender, and SolidWorks.
- Her leadership has been instrumental in scaling CADChain from a small team to a significant player in the deeptech space, with a diverse, international team.
IP Protection:
- Violetta has built deep expertise in intellectual property, combining academic training with practical startup experience. She has taken specialized courses in IP from institutions like WIPO and the EU IPO.
- She is known for sharing actionable strategies for startup IP protection, leveraging both legal and technological approaches, and has published guides and content on this topic for the entrepreneurial community.
- Her work at CADChain directly addresses the need for robust IP protection in the engineering and design industries, integrating cybersecurity and compliance measures to safeguard digital assets.
Blockchain:
- Violetta’s entry into the blockchain sector began with the founding of CADChain, which uses blockchain as a core technology for securing and managing CAD data.
- She holds several certifications in blockchain and has participated in major hackathons and policy forums, such as the OECD Global Blockchain Policy Forum.
- Her expertise extends to applying blockchain for IP management, ensuring data integrity, traceability, and secure sharing in the CAD industry.
Violetta is a true multiple specialist who has built expertise in Linguistics, Education, Business Management, Blockchain, Entrepreneurship, Intellectual Property, Game Design, AI, SEO, Digital Marketing, cyber security and zero code automations. Her extensive educational journey includes a Master of Arts in Linguistics and Education, an Advanced Master in Linguistics from Belgium (2006-2007), an MBA from Blekinge Institute of Technology in Sweden (2006-2008), and an Erasmus Mundus joint program European Master of Higher Education from universities in Norway, Finland, and Portugal (2009).
She is the founder of Fe/male Switch, a startup game that encourages women to enter STEM fields, and also leads CADChain, and multiple other projects like the Directory of 1,000 Startup Cities with a proprietary MeanCEO Index that ranks cities for female entrepreneurs. Violetta created the "gamepreneurship" methodology, which forms the scientific basis of her startup game. She also builds a lot of SEO tools for startups. Her achievements include being named one of the top 100 women in Europe by EU Startups in 2022 and being nominated for Impact Person of the year at the Dutch Blockchain Week. She is an author with Sifted and a speaker at different Universities. Recently she published a book on Startup Idea Validation the right way: from zero to first customers and beyond, launched a Directory of 1,500+ websites for startups to list themselves in order to gain traction and build backlinks and is building MELA AI to help local restaurants in Malta get more visibility online.
For the past several years Violetta has been living between the Netherlands and Malta, while also regularly traveling to different destinations around the globe, usually due to her entrepreneurial activities. This has led her to start writing about different locations and amenities from the POV of an entrepreneur. Here’s her recent article about the best hotels in Italy to work from.
About the Publication
Fe/male Switch is an innovative startup platform designed to empower women entrepreneurs through an immersive, game-like experience. Founded in 2020 during the pandemic "without any funding and without any code," this non-profit initiative has evolved into a comprehensive educational tool for aspiring female entrepreneurs.The platform was co-founded by Violetta Shishkina-Bonenkamp, who serves as CEO and one of the lead authors of the Startup News branch.
Mission and Purpose
Fe/male Switch Foundation was created to address the gender gap in the tech and entrepreneurship space. The platform aims to skill-up future female tech leaders and empower them to create resilient and innovative tech startups through what they call "gamepreneurship". By putting players in a virtual startup village where they must survive and thrive, the startup game allows women to test their entrepreneurial abilities without financial risk.
Key Features
The platform offers a unique blend of news, resources,learning, networking, and practical application within a supportive, female-focused environment:
- Skill Lab: Micro-modules covering essential startup skills
- Virtual Startup Building: Create or join startups and tackle real-world challenges
- AI Co-founder (PlayPal): Guides users through the startup process
- SANDBOX: A testing environment for idea validation before launch
- Wellness Integration: Virtual activities to balance work and self-care
- Marketplace: Buy or sell expert sessions and tutorials
Impact and Growth
Since its inception, Fe/male Switch has shown impressive growth:
- 5,000+ female entrepreneurs in the community
- 100+ startup tools built
- 5,000+ pieces of articles and news written
- 1,000 unique business ideas for women created
Partnerships
Fe/male Switch has formed strategic partnerships to enhance its offerings. In January 2022, it teamed up with global website builder Tilda to provide free access to website building tools and mentorship services for Fe/male Switch participants.
Recognition
Fe/male Switch has received media attention for its innovative approach to closing the gender gap in tech entrepreneurship. The platform has been featured in various publications highlighting its unique "play to learn and earn" model.
