MoneyGram is adding Visa card spending to its stablecoin-based remittance services in Colombia, giving recipients another way to use dollar-linked funds before converting them into pesos. The product is MoneyGram’s first stablecoin-backed Visa card, but it is not the first product of its kind available in Colombia.

Western Union launched its Stablecard across 37 markets in August, including markets where demand for dollar-linked balances is already visible. The distinction matters because the “first” claim applies to MoneyGram’s product, not to Colombia.

Remittances could be converted gradually

A recipient collecting a $500 transfer in Colombian pesos would normally convert the full payout at the provider’s applicable rate. If MoneyGram’s card keeps the funds in a stablecoin until they are spent, a $100 purchase could convert only the amount required for that transaction, leaving the remaining $400 dollar-linked. The example excludes fees and depends on the card’s final authorization and settlement terms.

The option may be most relevant to recipients who spend remittances over several weeks. Someone who needs the entire payment immediately may still prefer a bank deposit or cash withdrawal.

Colombia received approximately $13.1 billion from workers abroad during 2025, according to Migración Colombia, citing data from Banco de la República. The total increased 10.6% from 2024.

That volume gives MoneyGram a substantial market in which to test whether recipients want to retain part of their transfers in dollar-linked assets. MoneyGram’s earlier Colombian app allowed customers to receive a USDC-backed balance and withdraw pesos through more than 6,000 MoneyGram locations. The card adds retail spending as another way to use that balance.

The product does not eliminate the need for pesos. Rent, taxes, cash purchases and domestic transfers may still require local currency. Instead, it gives recipients another point at which they can decide when to convert their funds.

Merchants can continue receiving local currency

The card connects a digital-asset balance to Visa’s existing acceptance network. The stablecoin stores the cardholder’s value, while the card infrastructure manages merchant authorization and payment.

Visa’s existing program with Bridge illustrates how this arrangement can work. The required amount is deducted from a stablecoin balance and converted, while the merchant receives fiat through the normal card system. Visa says cards supported by Bridge can reach more than 175 million merchant locations.

MoneyGram’s card terms must confirm whether it uses the same conversion and settlement model. Users should not assume that every stablecoin-backed Visa card operates identically.

The broader direction is also visible in the stablecoin strategies of Visa and Mastercard. Card networks are incorporating digital assets into existing payment systems without requiring merchants to hold cryptocurrency or change their checkout equipment.

Fees will determine the practical value

A stablecoin transfer can be inexpensive onchain while the complete remittance remains costly. Funding charges, exchange-rate spreads and withdrawal costs can outweigh the blockchain network fee.

A 2026 Banca d’Italia study demonstrated that difference by sending 200 USDC across 10 international routes. Total costs ranged from 0.30% to 8.96%, with much of the expense appearing when funds entered or left the crypto system.

The study did not examine MoneyGram, Colombia or card payments, so its figures should not be treated as an estimate of this product’s cost. Its relevance is methodological: evaluating a remittance requires counting every stage of the transaction. Coindoo’s analysis of the research explains why stablecoin transfers are not automatically cheaper.

Four figures would allow Colombian users to compare the card with cash pickup or a bank payout:

• Total sender cost: The transfer fee and funding charge paid abroad.
• Checkout exchange rate: The USD/COP rate applied when a purchase is authorized.
• Card charges: Any issuance, transaction, inactivity or replacement fees.
• Cash-access cost: ATM and agent fees when pesos are still required.

The relevant comparison is the amount of goods or pesos a recipient can obtain from the same original transfer. An advertised zero-fee payment can still be expensive if the exchange rate includes a wide spread.

Token and card terms remain important

MoneyGram’s original Colombian balance used Circle’s USDC. In June, the company separately introduced MGUSD, issued by Bridge and initially deployed on Stellar.

The cardholder agreement should identify whether purchases are funded with USDC, MGUSD or both. It should also name the card issuer and program manager and explain whether the product is structured as debit, prepaid or secured credit.

Those distinctions affect what the customer legally owns. A stablecoin balance is not automatically a bank deposit, and conventional deposit insurance should not be assumed. The relevant protections depend on the token issuer, reserve arrangements, wallet structure and card agreement.

Customers should also check how access is restored after a lost phone, who investigates unauthorized transactions and whether funds can be transferred to an external wallet. A simple interface can conceal blockchain operations, but it cannot replace clear recovery and dispute procedures.

The card extends MoneyGram beyond cash pickup

A conventional remittance relationship often ends when the recipient collects the payment. A stored balance and payment card allow MoneyGram to remain involved while the customer holds, spends or withdraws the funds.

The card fits into a wider infrastructure strategy. MoneyGram uses Stellar for MGUSD, while its recent decision to open its cash network to Solana applications allows external wallets to connect with its physical locations. The products serve different purposes: one supports MoneyGram’s own dollar-linked services, while the other gives third-party applications access to cash ramps.

The commercial effect will depend on customer behavior. If recipients retain balances and use the card regularly, MoneyGram gains an ongoing payment relationship. Immediate withdrawal would leave its traditional remittance model largely unchanged.

Three measures will show whether the product works

The number of cards issued will not be enough to assess the launch. More useful measures are:

• Effective customer cost: The final amount available after transfer fees, conversion and card charges.
• Balance retention: How much of each remittance remains dollar-linked rather than being withdrawn immediately.
• Active spending: How many approved users complete regular card transactions.

Those figures would show whether the card changes how Colombian families use remittances or simply adds another interface between a dollar balance and the peso.

This article is for informational purposes only and does not constitute financial or payment advice. Availability, fees, exchange rates and protections may vary by product and jurisdiction.

Source: Coindoo.