Western Union and MoneyGram are losing users while stablecoins are reshaping the landscape of international payments.
Stablecoins are rapidly gaining traction in the international remittance sector, putting pressure on traditional industry giants.
According to a recent analysis by Matthew Sigel of VanEck, Western Union and MoneyGram are experiencing a decline in the use of their apps, with reductions of 22% and 27%, respectively. An even more significant figure is the number of monthly active users, which has remained consistently below 3 million since 2021.
These numbers are particularly noteworthy considering we’re talking about two giants in the sector, with market capitalizations of $302 billion and $92 billion, respectively. Meanwhile, the stablecoin market has surpassed $200 billion in capitalization, positioning itself as a serious competitor.
In recent years, stablecoins have gained many users, offering instant transfers with reduced fees and eliminating the typical delays and high costs associated with traditional remittance services. Stablecoins are proving especially useful as a tool for international payments, used by both individuals and businesses, particularly in the trade of commodities like oil and agricultural products, and in everyday financial transactions.
