Global crypto card payment volume reached $1.5 billion per month in August, up from about $100 million per month in January 2023, Artemis said in a report released Thursday (Jan. 15).
These cards, which enable users to spend stablecoin and cryptocurrency balances at traditional merchants, have seen the greatest adoption in countries in which stablecoins “solve tangible problems,” Artemis, an institutional data platform for digital finance, said in the report. For example, Argentina presents an opportunity because the cards can be used for inflation hedging.
Stablecoin-backed cards are growing because they enable users to store value anywhere with stablecoins and spend it anywhere with the cards, according to the report.
Direct merchant acceptance of stablecoins is unlikely because there is no problem that solves better than cards for Western consumers and merchants, per the report.
“Every successful payment network in recent history launched with exclusivity or a forcing function — stablecoin checkout has neither,” the report said. “The real opportunity lies not at the point of sale but in behind-the-scenes settlement. Stablecoin-backed cards represent the synthesis: cards provide ubiquitous acceptance; stablecoins provide superior cross-border value storage.”
PYMNTS reported Jan. 9 that stablecoins are making gains due to their stable value, usually pegged to a fiat currency, and their speed, programmability and global reach enabled by blockchains.
Rain announced Jan. 9 that it raised $250 million in a Series C funding round to scale its infrastructure for stablecoin payments and add new capabilities and products.
The company’s platform enables companies to launch compliant stablecoin cards that work everywhere Visa is accepted, offer rewards, convert fiat into stablecoins, power secure wallets and facilitate payouts.
“In the last year, our active card base has increased 30x and our annualized payment volume has increased 38x, but we’re still in the early innings,” Rain CEO and Co-founder Farooq Malik said at the time in a press release.
It was reported Wednesday (Jan. 14) that providers of stablecoin-linked cards are driving the demand for Visa’s stablecoin settlement.
The company’s stablecoin settlement volumes have risen to an annualized run rate of $4.5 billion, and “it’s mostly this class of stablecoin-linked card providers,” Visa Head of Crypto Cuy Sheffield told Reuters.
