Embedded Finance 'Arms Race' Continues
What happened
Modern Treasury has launched a developer-first payment services provider (PSP) that supports both fiat and stablecoin payments through unified APIs. In a parallel move, Visa is expanding its embedded finance ambitions by acquiring Newpay to enhance its local processing capabilities. These developments highlight a broader trend toward API-first, multi-rail payment infrastructure.
Why it matters
- Modern Treasury's new payment service supports a wide range of rails through a single API, including ACH, wires, real-time payments (RTP and FedNow), push-to-card, and stablecoins like USDC, USDG, and USDP, with USDT support planned for the future. - The launch of Modern Treasury's PSP was accelerated by its acquisition of Beam, a platform specializing in stablecoin and fiat payments. This integration, along with partnerships with Paxos and Circle, allows stablecoins to be treated as a primary payment rail. - Visa's acquisition of Newpay, along with Prisma Medios de Pago, is a strategic move to enhance its local processing capabilities in Argentina. Newpay operates a multi-network infrastructure that includes real-time payments and the Banelco ATM network. - The integration of Newpay and Prisma will allow Visa to deploy more advanced technologies in the region, such as tokenization, biometric authentication, and intelligent risk management. - The broader trend towards embedded finance is projected to be a significant opportunity, with lending, deposits, and payments being the top use cases. - API-driven, multi-rail payment systems are becoming essential for businesses to scale internationally, offering unified access to both domestic and international payment networks through a single integration. This approach reduces reliance on multiple banking relationships and streamlines cross-border transactions. - The shift to API-first payment infrastructure is also driven by the high costs of traditional card networks, with U.S. merchants paying over $100 billion in card fees annually, while newer rails like Brazil's Pix and India's UPI operate with near-zero fees. - Modern Treasury's platform is built to scale with its users; companies can start with the integrated PSP and later add direct bank partnerships without needing to change their initial integration.
Key numbers
- merchants paying over $100 billion in card fees annually, while newer rails like Brazil's Pix and India's UPI operate with near-zero fees.
What happens next
- The launch of Modern Treasury's PSP was accelerated by its acquisition of Beam, a platform specializing in stablecoin and fiat payments.
- The integration of Newpay and Prisma will allow Visa to deploy more advanced technologies in the region, such as tokenization, biometric authentication, and intelligent risk management.
Quick answers
What happened in Embedded Finance 'Arms Race' Continues?
Modern Treasury has launched a developer-first payment services provider (PSP) that supports both fiat and stablecoin payments through unified APIs. In a parallel move, Visa is expanding its embedded finance ambitions by acquiring Newpay to enhance its local processing capabilities. These developments highlight a broader trend toward API-first, multi-rail payment infrastructure.
Why does Embedded Finance 'Arms Race' Continues matter?
Modern Treasury's new payment service supports a wide range of rails through a single API, including ACH, wires, real-time payments (RTP and FedNow), push-to-card, and stablecoins like USDC, USDG, and USDP, with USDT support planned for the future. The launch of Modern Treasury's PSP was accelerated by its acquisition of Beam, a platform specializing in stablecoin and fiat payments. This integration, along with partnerships with Paxos and Circle, allows stablecoins to be treated as a primary payment rail. Visa's acquisition of Newpay, along with Prisma Medios de Pago, is a strategic move to enhance its local processing capabilities in Argentina. Newpay operates a multi-network infrastructure that includes real-time payments and the Banelco ATM network. The integration of Newpay and Prisma will allow Visa to deploy more advanced technologies in the region, such as tokenization, biometric authentication, and intelligent risk management. The broader trend towards embedded finance is projected to be a significant opportunity, with lending, deposits, and payments being the top use cases. API-driven, multi-rail payment systems are becoming essential for businesses to scale internationally, offering unified access to both domestic and international payment networks through a single integration. This approach reduces reliance on multiple banking relationships and streamlines cross-border transactions. The shift to API-first payment infrastructure is also driven by the high costs of traditional card networks, with U.S. merchants paying over $100 billion in card fees annually, while newer rails like Brazil's Pix and India's UPI operate with near-zero fees. Modern Treasury's platform is built to scale with its users; companies can start with the integrated PSP and later add direct bank partnerships without needing to change their initial integration.
