Stablecoin Payments Surge 45% Despite Flat Supply, Expanding Into Everyday Spending
The stablecoin market is showing a striking divergence this year: supply growth has nearly stalled, while actual payment usage has surged. According to a report by blockchain analytics firm Allium, stablecoin payments reached $482 billion from January through September, up 45% from the same period a
Stablecoins are witnessing a significant uptick in usage, with payments soaring 45% year-to-date despite a relatively flat supply growth, according to a report by blockchain analytics firm Allium. From January through September, stablecoin payments hit $482 billion, up 45% from the same period in the previous year. In contrast, the total supply of stablecoins expanded by just 0.4% during the same period, suggesting that existing coins are being utilized more actively for transactions.
Transaction volumes outpaced the increase in payment value, with the cumulative number of stablecoin transactions reaching 1.04 billion, a 71% year-over-year surge. As a result, the average payment size has shrunk from $544 to $462, indicating more frequent, smaller transactions.
Smaller purchases under $50 contributed to 84% of the rise in stablecoin-linked card transactions, suggesting that stablecoins are moving beyond large-scale remittances into everyday consumer spending. Major payment networks like Visa and Mastercard are actively integrating stablecoins into their systems. Visa currently runs over 160 stablecoin-linked card programs worldwide, with payment volume growing nearly 200% year-over-year.
Visa is developing a system that enables users to make online and in-store purchases using assets in their digital wallets, without the need to convert them beforehand.
Mastercard, on the other hand, has taken a more controlled approach, acquiring payments infrastructure provider BVNK and launching a "Stablecoin Security" service. The service analyzes blockchain transaction data to detect potential fraud and financial sanctions before funds are transferred, with plans to launch the service in North America before a global rollout by 2027.
In South Korea, testing of stablecoin-based payment systems is underway. Shinhan Bank and KSNET partnered with Crypto.com to allow foreign tourists to pay with U.S. dollar-backed stablecoins, with merchants receiving settlement in Korean won. BC Card also tested a system in August that enables payments and refunds using the USDC stablecoin at domestic merchants accepting QR code payments.
Moreover, stablecoins are finding their way into everyday retail settings. KB Kookmin Card collaborated with BGF Retail and others to test stablecoin payments at CU stores, processing transactions directly on the blockchain without routing them through conventional card networks. Industry experts predict that adoption will first occur in areas with clear use cases, such as payments by foreign tourists and cross-border remittances.
Additionally, stablecoin issuers are adjusting their strategies. While major players like Tether and Circle have seen a decline in stablecoin supply, smaller issuers have added $6.9 billion, helping to fill the gap. The growth of payments made by artificial intelligence agents has also doubled in the third quarter, reaching 68.3 million transactions.
However, for stablecoins to become a firmly established everyday payment method, competitive fees, ease of use, and effective security incident response systems will be crucial.
Written by urgent.news from BusinessKorea's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
