Stablecoins are no longer just a niche innovation in the cryptocurrency world—they're rapidly evolving into a practical tool for everyday payments. With major payment companies like Stripe, Mastercard, Visa, Circle, and PayPal stepping in to build infrastructure and services around stablecoin transactions, the technology is inching closer to mainstream adoption.
In May alone, Stripe launched a suite of new financial products, including stablecoin-enabled accounts for businesses in 101 countries. This move, along with recent initiatives from other global payment leaders, signals a pivotal shift: stablecoins are transitioning from speculative assets to functional instruments in cross-border commerce, remittances, and digital wallets.
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What Are Payment Stablecoins?
Stablecoins are digital currencies pegged to stable assets like the U.S. dollar, euro, or government securities. Unlike volatile cryptocurrencies such as Bitcoin or Ethereum, stablecoins maintain a consistent value, making them ideal for transactions. Their growing use in payments reflects increasing confidence in both the technology and regulatory frameworks.
Regulatory developments in Europe (MiCA) and proposed legislation like the GENIUS Act in the U.S. Congress aim to standardize consumer protections and clarify compliance requirements. Industry experts believe this clarity will accelerate adoption.
According to Fireblocks, a leading digital asset infrastructure provider, 88% of 300 surveyed executives across payments, compliance, and treasury roles say regulation is no longer a barrier to adopting stablecoin payments. Nearly half (49%) are already using stablecoins for transactions, while 23% are in pilot programs and 18% are planning implementation.
Fireblocks also reports that stablecoin transaction volume used for payments has surged—from 5% at the start of 2024 to over 20% today. This rise mirrors broader growth: global stablecoin transaction volume jumped from $560 billion in 2020 to an estimated **$5.7 trillion in 2024**.
Why Payment Firms Are Stepping In
While it's unlikely consumers will pay for groceries directly in USDC or EURC anytime soon, payment companies see an opportunity in simplifying conversions between stablecoins and fiat currency. By acting as intermediaries—off-ramping digital assets into traditional money at the point of sale—these firms enable merchants to accept crypto-based payments without overhauling their existing systems.
As total stablecoin circulation surpasses $240 billion, more users hold digital dollars in wallets. Payment platforms can bridge the gap between this growing base and real-world spending, offering seamless conversion across borders and currencies.
Tony DeSanctis, senior director at Cornerstone Advisors, notes that nonbank fintechs are already moving billions without relying on traditional banks. "Stablecoins represent not just a method of money movement but also a place to store value," he says. "This could significantly disrupt traditional banking models."
The key question remains: How critical will bank-like protections—FDIC insurance, chargebacks, fraud monitoring—be to widespread consumer trust?
Stripe’s Global Stablecoin Push
Stripe’s May product rollout was one of its most ambitious yet, featuring AI-powered risk assessment tools trained on tens of billions of transactions. These systems detect patterns missed by traditional models—crucial for handling smart contract-driven payments common in blockchain ecosystems.
A cornerstone of this launch was Stablecoin Financial Accounts, now available to businesses in 101 countries. This product emerged just three months after Stripe acquired Bridge, a stablecoin infrastructure platform.
These accounts allow entrepreneurs in high-inflation economies to conduct international trade using dollar-backed stablecoins, shielding them from local currency depreciation. For example, a small business owner in Argentina can invoice a client in Germany using USDC and receive payment without exposure to peso volatility.
Michael Shaulov, CEO of Fireblocks, called Stripe’s entry a turning point. “Once Stripe got involved, we started getting lots of calls about how stablecoins can be used for payments,” he said.
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Mastercard Enables Stablecoin Spending
Mastercard has been steadily expanding its crypto capabilities, focusing on usability for non-technical users. In May, it partnered with MoonPay to let individuals and businesses send and receive payments via stablecoins.
Users can now link their digital wallets—holding USDC or other stablecoins—to Mastercard-enabled cards and spend at any of the network’s 150 million+ merchant locations worldwide. The conversion from stablecoin to fiat happens instantly behind the scenes.
Raj Dhamodharan, EVP of blockchain and digital assets at Mastercard, highlighted the utility for gig workers: “Imagine someone receiving payment in USDC directly into their wallet. They can now spend it like cash.”
The partnership leverages Iron, a stablecoin tech company acquired by MoonPay in March, to power business disbursements and turn crypto wallets into functional digital bank accounts.
"Money movement alone doesn't make a difference," Dhamodharan emphasized. "You need infrastructure—and we’re building it."
Visa Accelerates Stablecoin Integration
Visa is pursuing a similar strategy, aiming to put stablecoins "in motion" beyond mere storage. In late April, it teamed up with Bridge (now part of Stripe) to enable fintech developers to issue Visa-branded cards linked to stablecoin balances through a single integration.
This allows users in multiple countries to spend their stablecoins seamlessly across Visa’s vast merchant network. Like Mastercard, Visa focuses on fast off-ramps—converting stablecoins to fiat just before purchase.
Rubail Birwadker, Head of Growth Products & Partnerships at Visa, believes the potential goes far beyond remittances: “Stablecoins can fuel real economic activity. They can reach merchants worldwide—it’s a huge opportunity.”
Circle Builds a Global Payments Network
Circle, issuer of the widely used USDC and EURC stablecoins, launched the Circle Payments Network (CPN) in April. This platform connects banks, fintechs, digital wallets, and challenger banks to enable instant cross-border payments in multiple currencies.
Initial partners include Deutsche Bank, Standard Chartered, Société Générale, and Banco Santander, bringing deep expertise in global finance. The network supports use cases such as payroll, supplier payments, remittances, capital markets settlements, and treasury operations—all powered by regulated stablecoins.
By integrating institutional-grade compliance and liquidity management, Circle aims to make stablecoins a trusted layer in enterprise finance.
PayPal Rewards Stablecoin Holders
PayPal has made stablecoins central to its comeback strategy after a tough period during the 2022–2023 fintech downturn. Its PYUSD stablecoin is now backed by a loyalty program offering:
- 3.75% interest on held balances
- Reward points redeemable via PayPal Checkout
- Free transfers between PayPal and Venmo users
- Fee-free international remittances through Xoom
Additionally, PayPal partnered with Coinbase to facilitate free conversions between PYUSD and fiat currency. Coinbase will also distribute PYUSD across PayPal’s merchant network, increasing its usability at checkout.
This dual approach—earning rewards while spending—could drive mass adoption among younger, digitally native users.
Emerging Markets Embrace Stablecoin Remittances
In Brazil, Braza Group launched USDB, a dollar-backed stablecoin on Ripple’s XRP Ledger, targeting remittance flows between emerging economies. By bypassing volatile local currencies, USDB offers faster, cheaper transfers.
Similarly, Banco Industrial in Latin America integrated stablecoin-powered payments into its Zigi mobile app via partnership with SukuPay. Users can receive funds from the U.S. in under 20 seconds for just 99 cents using only a phone number.
These innovations highlight how stablecoins serve both banked and unbanked populations—offering financial inclusion where traditional banking falls short.
Frequently Asked Questions
Q: What are stablecoins used for?
A: Stablecoins are primarily used for cross-border payments, remittances, hedging against inflation, and as a bridge between crypto and traditional finance due to their price stability.
Q: Are stablecoin payments secure?
A: Yes—when issued by regulated entities like Circle (USDC) or PayPal (PYUSD), they are backed by reserves and subject to audits. However, users should stick to well-known, compliant stablecoins.
Q: Can I spend stablecoins like regular money?
A: Not directly—but through platforms like Visa, Mastercard, or PayPal, you can convert them instantly into fiat currency at millions of merchants worldwide.
Q: Do banks support stablecoins?
A: Some banks are exploring them (e.g., Banco Santander with Circle), but most innovation comes from fintechs. Regulatory clarity may prompt wider bank adoption soon.
Q: Is there risk in holding stablecoins?
A: Reputable issuers maintain full reserves and transparency. However, past failures (e.g., TerraUSD) show risks exist—stick to regulated options with proven track records.
Q: How do stablecoins benefit developing economies?
A: They protect savings from inflation, enable fast low-cost remittances, and provide access to global markets without requiring traditional banking infrastructure.
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