MoneyGram has introduced a digital, USD-backed stored value account in its app, created to work with both traditional fiat currencies and stablecoins.
The rollout marks a shift in cross-border finance as consumers who were once constrained by fragmented systems and local currencies can now leverage stablecoins to move and hold money more efficiently across borders.
More cross-border solutions from MoneyGram
In the MoneyGram app, customers are now able to receive funds instantly into a USD balance, store those funds, and cash out or spend whenever and however they want. The feature will first be launched in Colombia, with plans to expand to additional markets in the near future. The app aims to offer greater value to recipients while marking a step forward in the company’s goal to build a better experience for both senders and recipients around the world.
Sending money internationally is a financial habit for millions of individuals, enabling them to send money to loved ones, cover their cost of living, and make investments in businesses and long-term financial stability. Yet, individuals in many regions face challenges such as travelling to pick up physical cash, carrying around large amounts of local fiat currency, and watching that currency steadily lose value over time.
MoneyGram aims to tackle these issues by allowing customers to receive and hold funds in the app, having a stable and trusted environment that allows for better money management. Colombia is a key remittance corridor where families get more than 22 times the money they send abroad, and where the exchange rate has tended to depreciate over the last 10 years against the USD.
The company plans to contribute to a future where financial access is universal, and all communities are included in the economy. Built for global growth, the new features are a step towards a world where everyone has access to USD stablecoins. Users will receive or send money in seconds, leveraging MoneyGram’s global network and blockchain technology, and have the ability to add personalised messages to their transfers via WhatsApp, SMS, or the MoneyGram app. The app is available to anyone with a smartphone, no bank account needed.
In the near future, Colombian customers will also be able to add cash directly into USD balance via the MoneyGram retail network, spend online or in-person in USD globally with linked Mastercard or Visa debit cards and no exchange rates, and earn incentives on deposits through integrated savings options.
