MoneyGram Launches Stablecoin-Backed Card, Sets Sights on Africa's Remittance Market

MoneyGram recently launched its MoneyGram Card, a stablecoin-backed product available to eligible customers. This card allows users to hold a stable-dollar balance in the MoneyGram app and spend it at merchants that accept Visa or access cash through MoneyGram locations.

The launch is significant for several reasons. Firstly, Africa has been identified as a key market for MoneyGram's stablecoin infrastructure since 2021. The continent receives roughly $100 billion in remittances annually, making diaspora transfers one of the largest and most resilient sources of external finance.

However, sub-Saharan Africa remains the world's most expensive region to send money to, with an average cost of about 8.78% of a $200 transfer in Q1 2025. A stablecoin-backed card that receives remittances as USDC and holds them in a dollar-denominated balance would improve on the current system for African remittance recipients.

The MoneyGram Card is built on top of MoneyGram's existing relationship with the Stellar Development Foundation, which enables cash-to-USDC and USDC-to-cash conversions through MoneyGram's retail network. The card also uses Rain's stablecoin infrastructure to provide a seamless payment experience.