Remittance apps slow as stablecoins gain traction in 2024
Cryptocurrency bull market accelerated stablecoin use
The world of cross-border payments is undergoing a seismic shift. While traditional remittance apps have long dominated the sector, a new competitor is emerging—stablecoins.
Matthew Sigel, head of digital assets research at VanEck, attributes this trend to the accessibility and efficiency of stablecoins, according to the Cryptopolitan.
Unlike traditional remittance platforms, acquiring stablecoins often bypasses the need for a bank account, leveraging decentralized trading platforms instead. Transactions are nearly instantaneous and cost only a fraction of what fintech services charge.
In 2024, downloads of remittance apps, once the go-to solution for global money transfers, slowed significantly. Meanwhile, stablecoins like USDT and USDC have surged in popularity, offering faster transactions with minimal fees.
Bull Market Fuels Stablecoin Adoption
The 2024 cryptocurrency bull market accelerated stablecoin usage, particularly in retail remittances. Leading the shift are regions like India, Mexico, and the Philippines, which have embraced crypto for its affordability and accessibility.
In 2024, global remittances reached $685 billion, with India receiving $129.1 billion. While stablecoin remittance volumes remain difficult to isolate, Visa data shows stablecoins facilitated $28.7 trillion in total transfers last year, underscoring their growing relevance.
Blockchain advancements have also made stablecoins more appealing. Networks like TRON and Binance Smart Chain enable near-zero transaction fees, making stablecoins a competitive alternative to remittance apps. Additionally, as crypto ownership expands—reaching 560 million people in 2024—the audience for stablecoin-based transfers widens.
While fintech-based remittances are expected to grow at 3.93% in 2025, stablecoin supply is projected to double, signaling a potential power shift in the market. Though hurdles remain, such as converting stablecoins into local currencies, the trajectory suggests stablecoins are poised to redefine cross-border payments.
Stablecoin trading volumes are reaching new highs as businesses increasingly adopt them. This surge is driving expectations for Bitcoin’s continued growth.
