Global remittance company MoneyGram is further expanding stablecoin use cases, extending its related business into everyday consumption. The company has launched a stablecoin-supported payment card, allowing customers to hold dollar-denominated balances and use these balances for purchases at any merchant that accepts Visa.
MoneyGram said Thursday that the MoneyGram Card will first launch in Colombia and plans to expand to other markets in the coming months. Users can register through the MoneyGram application, add the digital card to their mobile wallet, and use it for online and in-store purchases.
In addition to everyday payments, users can also use the card to send funds to themselves and withdraw cash in local currency at MoneyGram locations.
In terms of asset backing, the card will initially use Circle’s USDC (USDC) stablecoin. MoneyGram told CoinDesk that it will subsequently launch its own MGUSD token.
MoneyGram plans to launch a physical version of the card later this year, which will also support ATM withdrawals. The product was jointly developed by MoneyGram, stablecoin payments company Rain, wallet provider Crossmint, and the Stellar blockchain.
MoneyGram’s expansion of stablecoin applications comes as stablecoins are gradually becoming an important part of everyday financial activities. Tokens pegged to the U.S. dollar have gradually moved from initially serving mainly crypto market trading into areas such as cross-border payments, remittances and corporate treasury management. Payment cards, relying on payment networks already widely used by consumers, provide a more direct way to use stablecoin balances for actual purchases.
According to payments scan data, this trend is also beginning to appear in card spending. In August, stablecoin card spending transaction volume had already exceeded $1.1 billion.
MoneyGram CEO Anthony Soohoo said: “We are giving customers more freedom and control, allowing them to manage their funds on one platform.”
The newly launched payment card is also part of MoneyGram’s continued efforts to integrate stablecoin channels into traditional remittance networks.
MoneyGram said its business network covers more than 200 countries and regions, with more than 60 million active customers and nearly 500,000 retail locations. This large traditional remittance network also provides the company with a channel connecting digital currencies with physical cash.
In June this year, MoneyGram recently launched its own dollar-backed stablecoin MGUSD. The stablecoin is issued by Stripe’s stablecoin infrastructure company Bridge and is based on the Stellar network (Stellar network).
In addition, MoneyGram is also one of the partners of the publicly listed stablecoin project Open USD. The project is led by Stripe and aims to share revenue with a group of financial backers.