Western Union and MoneyGram Launch Stablecoins Amid User Decline
Western Union and MoneyGram are launching stablecoin products after monthly active users fell as customers shifted to digital platforms and cryptocurrency.
Traditional remittance firms Western Union and MoneyGram are launching their own stablecoin products to combat a decline in monthly active users. As of September, Western Union saw a 10% drop in users, while MoneyGram experienced a 9% decrease.
Customers are increasingly abandoning traditional services to avoid high transaction fees and delivery times that span multiple days. Digital-first platforms like Wise have capitalized on this shift, reporting a 9% increase in users. The adoption of stablecoins such as USDC has further accelerated the trend, offering transfers that complete in minutes.
Western Union faces additional pressure due to its reliance on physical storefronts. Fear of immigration enforcement raids has discouraged some migrants from waiting in in-store lines, pushing them toward virtual transaction methods.
