MoneyGram Card goes live on Rain

For over 85 years, MoneyGram has delivered funds to people all over the world, currently serving 60 million+ active users. Today, it’s reinventing itself with stablecoins. 

The MoneyGram Card is now live. It’s a stablecoin card in a familiar wrapper, giving users a way to spend directly from a stable dollar balance. Recipients no longer need to move money off-platform to be able to spend. With a few steps, users can sign up for a MoneyGram Card directly in their app and add it to their mobile wallet, ready to use anywhere Visa is accepted. 

As one of the earliest money transfer businesses to start investing in stablecoin infrastructure, MoneyGram has spent the past several years rebuilding its backend around the technology. CEO Anthony Soohoo says the move into stablecoins is part of a “refounding” of the company. The card is an important part of that transition, giving MoneyGram customers a way to spend stable dollar balances directly from the platform. 

Powered by Rain, the MoneyGram Card runs on stablecoins under the hood but functions like any other card. Spending power is denominated in dollar value so users can spend online, in person, and across borders without converting to local currencies. Merchants do not need to hold stablecoins or be able to accept them directly; if they take Visa, they can take the MoneyGram Card. 

The card is MoneyGram’s latest stablecoin product. In 2022, it launched crypto-to-cash and cash-to-crypto conversions, enabling customers to exchange USDC for cash and vice versa. Earlier this year, MoneyGram doubled down and launched its own native stablecoin, MGUSD. MoneyGram is already moving significant volume over stablecoin rails and is on pace to run roughly $3 billion of its FX trading through stablecoins annually. Now, the MoneyGram Card adds a payment layer to complete that flow, giving users a way to spend in dollar value at more than 175 million merchant locations directly from their balance. 

For MoneyGram, the case for stablecoins is practical. Sending $200 from New York to Bogotá may feel instant to the users, but in reality settlement can take days. The sender gives cash to a MoneyGram agent in the US and the receiver picks up cash in Colombia, sometimes only minutes later. On the backend, it takes days for MoneyGram to get the sender’s $200. But the receiver in Colombia doesn’t feel that lag because MoneyGram prefunded a local account. 

Covering that float is expensive, and MoneyGram has to do so in more than 200 countries and territories. Stablecoins settle nearly instantly, so funding local markets can be much more efficient. By allowing agents to settle in stablecoins, MoneyGram can free up idle capital and streamline its treasury. 

For customers, stablecoins mean immediate access to spendable funds directly in their app; no conversions or stablecoin purchases required. They see a better experience without any additional complexity.

‍

The recipient becomes the customer

For most of MoneyGram’s history, the sender has been the primary customer. That’s the party that selects the service and pays the fees. Once the funds are delivered, the recipient either cashes out or transfers value off-platform and the relationship ends. The MoneyGram card changes that by keeping funds within the ecosystem. 

Money arrives in dollar value and is available to spend immediately. Recipients can use the card for their daily spending without needing to convert to local currencies. MoneyGram is no longer just the way money arrives, it’s now the way it gets spent. A service someone might have used once a month becomes an integrated part of their everyday financial lives.

‍

Why MoneyGram chose Rain

The card brings together three layers of infrastructure. Crossmint powers the wallets where balances live, funds move over Stellar’s network, and Rain powers the card that connects balances to Visa's network. MoneyGram tapped Rain specifically for its compliance-led approach and single API integration that fits into its existing partner ecosystem. Rain’s infrastructure is compatible with various wallets and chains, so MoneyGram did not need to find new providers in order to add in a card layer. The MoneyGram Card is live today in Colombia with more markets to follow in the coming months. 

MoneyGram’s first 85 years were spent building a global network for moving money. Stablecoins are giving it the opportunity to build much more around what happens after the money arrives. We look forward to being part of MoneyGram’s next 85 years. If you’re interested in exploring what a card program could unlock for your business, let’s talk.