Stablecoin Cards Surge and Reshape the Payments Market

The use of stablecoin cards allows consumers to pay for products without merchants needing to handle digital assets. The digital dollar balance is automatically converted to local currency during the transaction. The merchant receives the funds in fiat currency through their usual payment providers.

Visa recorded over 160 stablecoin-linked card programs by October. The payment volume in this category grew nearly 200% compared to the previous year. This progress benefits companies that provide the necessary infrastructure to connect the crypto world to the traditional financial system.

Several companies work behind the scenes to make these operations possible. The ecosystem involves regulated issuers, payment networks, and conversion providers. Each participant in the chain seeks revenue through processing fees, currency exchange, and settlement services.

Traditional card program costs remain present even with the use of stablecoins. Interchange fees are still paid by the merchant bank to the card issuer. The business model depends on splitting these fees among the various intermediaries that process the purchase.

The integration of stablecoins into retail expands the utility of these assets for everyday payments. Technical infrastructure ensures that the user experience is similar to that of a conventional bank card. The sector continues to expand with the entry of major global payment processors.