MoneyGram adds Visa consumption feature to stablecoin remittances

Core Points

The concept of "first time" applies to MoneyGram, not the Colombia market. Colombia received approximately US$13.1 billion in foreign exchange remittances in 2025. Merchants do not need to change the way they receive local currency. The fee structure determines the actual value of the product. It is crucial to distinguish what "first time" means: it is the first Visa card launched by MoneyGram to support stablecoins, but it is not the first of its kind in the Colombia market.

Western Union has already deployed

As early as August this year, Western Union launched its Stablecard products in 37 markets, including emerging demand for dollar-linked balances.

Fund conversion mechanism and application scenarios

Take a transfer of US$500 as an example to illustrate. If the recipient receives the transfer in full in a Colombia peso account, provider will convert it in full at the applicable exchange rate. If MoneyGram's card allows funds to be retained in the form of stable coins until they are used, then when a purchase of $100 occurs, the system may only convert the amount required for the transaction, and the remaining $400 will remain as dollar-linked assets. It should be noted that this example does not include a handling fee, and the specific operation depends on the final authorization and settlement terms of the card.

This feature is best suited to recipients who are gradually using remittances over a few weeks. For customers who need to withdraw funds in full and immediately, bank transfers or cash withdrawals may still be the better option.

Colombia's huge remittance market

According to Migración Colombia citing data from Banco de la República, Colombia received approximately US$13.1 billion in remittances from the Overseas Labor Office in 2025, an increase of 10.6% from 2024. This large market size provides MoneyGram with an important testing ground for verifying whether recipients are willing to keep some of their remittances in dollar-linked assets.

Previously, MoneyGram's app in Colombia has allowed customers to receive USDC-based balances and withdraw pesos through more than 6,000 MoneyGram outlets. The newly launched cards add retail consumption as a new way to use funds. However, the product did not eliminate the need for pesos. Local currency may still be required for rent, taxes, cash purchases and domestic transfers. Its core purpose is to provide recipients with another node to choose to convert currencies.

Merchants do not need to hold a stablecoin wallet

This card connects digital asset balances to the existing Visa acceptance network. Stable coins store the value of the cardholder, while the card infrastructure handles merchant authorization and payment processes. An existing project between Visa and Bridge demonstrates how this arrangement works: the required amount is deducted from the stablecoin balance and converted, while merchants receive fiat through the normal card system. According to Visa, cards backed by Bridge can reach more than 175 million merchant locations.

MoneyGram's card terms must confirm whether they use the same conversion and settlement model. Users should not assume that each Visa card that supports stablecoins works exactly the same. The larger trend is already clear: Visa and Mastercard's stablecoin strategies show that card organizations are integrating digital assets into existing systems without the need for merchants to hold cryptocurrency or change checkout equipment.

The comprehensive cost far exceeds the blockchain fee

Although stablecoin transfers may be less costly on the chain, the overall remittance cost is still high. Deposit fees, exchange rate spreads and withdrawal fees may exceed network fees. A 2026 study by Banca d'Italia demonstrated this difference by sending 200 USDC to ten international routes. Total costs range from 0.30% to 8.96%, with the majority of expenses occurring when funds enter or leave the encryption system.

This study did not involve MoneyGram, Colombia or card payments, so its data should not be considered an estimate of the cost of this product. The methodological significance is that every stage of the transaction must be calculated when assessing the cost of remittances. Coinoo's research and analysis explains why stablecoin transfers do not automatically mean cheaper.

Four key metrics for comparison

Colombia users can compare card services with cash withdrawals or bank payouts using the following four metrics:

• Total sender costs: Transfer fees and deposit fees paid overseas.
• Closing exchange rate: The USD/COP exchange rate applied when authorizing the purchase.
• Card Fees: Any card opening fees, transaction fees, dormancy fees or card replacement fees.
• Cash acquisition costs: ATM and agent branch fees when pesos are still needed.

The most useful comparison is how many goods or pesos the recipient can get from the same original transfer. If the exchange rate contains large spreads, even a zero-fee payment can be very expensive.

Token and card terms require equal attention

MoneyGram's early Colombia balances used Circle's USDC. In June, the company separately launched MGUSD, which was issued by Bridge and initially deployed on the Stellar network.

The cardholder agreement should clarify whether the purchase is funded by USDC, MGUSD, or both. The agreement should also identify the card issuer and plan manager and explain whether the product is designed as a debit card, prepaid card, or guaranteed credit structure. These differences affect the customer's legal ownership rights. Stable currency balances are not automatically equated to bank deposits, nor should traditional deposit insurance be assumed. Relevant protection measures depend on the token issuer, reserve arrangements, wallet structure and card agreement.

Customers should also check how access is restored after a phone is lost, who is responsible for investigating unauthorized transactions, and whether funds can be transferred to external wallets. A simple interface can hide blockchain operations, but it cannot replace clear recovery and dispute resolution procedures.

Cards extend MoneyGram's business boundaries

Traditional remittance relationships usually end when the recipient collects payment. Storing balances and payment cards allows MoneyGram to continue to engage in interactions while customers hold, consume or withdraw funds. The card is in line with a broader infrastructure strategy. MoneyGram uses the Stellar network to support MGUSD, and recently decided to open the cash network to access Solana applications, allowing external wallets to connect to its physical outlets. These products serve different purposes: one supports MoneyGram's own dollar-pegged service, and the other provides a cash channel for third-party applications.

Three indicators will determine success or failure

The number of cards issued is not enough to judge the effectiveness of this release. More valuable measures include:

• Effective customer cost: The final available amount after deducting transfer fees, conversion fees, and card fees.
• Balance Retention rate: What percentage of each remittance remains dollar-pegged rather than withdrawn immediately.
• Active consumption: How many approved users complete regular card transactions.

These data will show whether the card improves the way Colombia households use remittances, or whether it simply adds another interface between the dollar balance and the peso.

This document is for reference only and does not constitute financial or payment recommendations. Availability, fees, exchange rates and protection measures may vary by product and jurisdiction.