The news: MoneyGram launched a mobile app that uses stablecoins to make cross-border payments easier and cheaper.
How we got here: Legacy cross-border providers have been put on notice by fintechs, who continue to challenge them in the remittance arena after the surge in interest in stablecoin and crypto payment solutions following the GENIUS Act’s passage.
Why this matters: MoneyGram is trying to compete against the likes of SoFi, which already offers a robust digital interface for customers—and, recently, crypto-based remittances.
A prior tie-up with Tencent allowed MoneyGram customers to send funds directly to WeChat pay wallets to meet customers’ digital needs.
Stablecoin use case: Critics of stablecoins argue they have limited usability, but for businesses like MoneyGram, stablecoins can rapidly improve the speed and costs of their remittance services.