Mastercard, Visa and Stripe expand stablecoin payments as transaction volumes rise

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Mastercard, Visa, Stripe expand stablecoin payments

Highlights

Stablecoin payments reached $482 billion through September 2023, up 45% year-over-year, while transaction count rose 71% to over 1 billion, according to Allium.
Mastercard, Visa, and Stripe announced this week new stablecoin-enabled payment solutions, integrating digital asset rails with mainstream payment infrastructure for business operations.
Despite rapid growth, stablecoin card spending was $3.9 billion through September 2023, equaling just 0.03% of Visa's $4 trillion Q2 payment volume, highlighting significant future expansion potential.

Payment growth outpaces stablecoin supply

As reported by CoinDesk, citing Allium, stablecoin payments reached $482 billion through September, up 45% from a year earlier, while the number of payments climbed 71% to more than 1 billion. The blockchain analytics firm's data suggests existing stablecoins are being used more intensively for transactions rather than being driven mainly by fresh issuance.

The report said the total value of stablecoins in circulation stands at about $305 billion at the end of September, only 0.4% higher than at the start of the year. That divergence points to faster turnover in digital dollars tied to fiat currencies such as the U.S. dollar, even as new supply remains limited.

Allium also said stablecoin-linked card spending reached $3.9 billion through September, ten times the level of a year earlier. Purchases below $50 accounted for 84% of the increase in card transactions, indicating much of the growth is coming from everyday spending.

The figures come with limits. Of $97.9 trillion in raw stablecoin transfers through September, Allium classified only $2.4 trillion, or 2.5%, as end-user activity after excluding exchange, decentralized finance and automated transactions, and its payments estimate is drawn from that smaller pool.

Card networks and payment firms add crypto rails

Mastercard, Stripe and Visa each announce new services this week that connect stablecoins with established payment infrastructure. The moves show how major payment groups are trying to bring digital assets into mainstream business operations rather than leaving them in separate crypto systems.

Mastercard introduced its Global Money Platform with BVNK, the stablecoin infrastructure firm it acquired in August. The service combines fiat currency accounts, stablecoin balances, conversions, card spending and bank payouts through a single connection, with Nuvei and Marqeta among the first customers integrating it.

Stripe is working with Plasma on cards that support balances in dollars, euros, Brazilian reais, Mexican pesos and Colombian pesos alongside eligible stablecoins. The companies say customers will be able to spend from the balance that matches a purchase, reducing unnecessary currency conversions, and Stripe's card infrastructure already covers more than 30 countries with plans to exceed 100 by next year.

Visa says Inyo Global becomes the first provider to put Visa Direct's stablecoin prefunding service into commercial use. The setup allows payment firms to use Circle's USDC to fund cross-border payouts in nearly real time while recipients still receive funds through conventional payment channels.

Stablecoin cards still account for a very small share of mainstream payments. Allium estimates second-quarter spending through those cards equals just 0.03% of Visa's $4 trillion in payment volume, leaving substantial room for expansion if adoption continues to broaden.

Phil Fayer, chief executive of Nuvei, said stablecoins are becoming part of how businesses move money across borders and currencies. Fipto Chief Executive Officer Patrick Mollard said companies increasingly want stablecoins integrated into existing financial operations instead of maintaining separate crypto infrastructure.

In our earlier report on Philippine e-commerce payment trends, we noted that cash-on-delivery still makes up a sizable share of online purchases even as QR and bank-transfer usage rises sharply. The piece highlighted how payment choice affects conversion—many shoppers abandon carts if their preferred method isn’t available—pushing merchants to support more digital options while managing growing fraud concerns.

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