Stablecoin Payments Explained: The Complete Guide to Next-Generation Finance

Revolutionize your payments with stablecoins. Learn how stablecoins offer 24/7, low-cost global transactions that are faster and cheaper than traditional financial services.

Stablecoin Payments: A Complete Guide to Next-Gen Global Finance

The world of finance is undergoing a silent revolution. While traditional payment systems like Visa and Mastercard have long dominated global transactions, a new force has emerged that is changing the game: stablecoin payments. Once a niche feature of the crypto world, stablecoins have evolved into a robust financial infrastructure, offering a new paradigm for cost-efficient, transparent, and instant value transfer. This article serves as a comprehensive stablecoin payments guide, exploring how stablecoins are not just an alternative, but a superior solution for everything from cross-border trade to daily purchases, positioning them as the backbone of the next generation of global payments.

Part 1: Explosive Growth of the Stablecoin Payment Market

The stablecoin market is experiencing unprecedented expansion.

According to MarketWatch, the total supply of stablecoins reached $247 billion by the end of May 2025, representing a 54% year-over-year increase (Source: MarketWatch). This figure marks:

• A 78.46% surge from the $138.4 billion stablecoin supply recorded on January 31, 2023 (Source: Coingecko)

• A 147% growth compared to the $100 billion supply on May 31, 2021 (Source: k33)

The Boston Consulting Group's (BCG) 2024 report revealed:

• Total stablecoin transaction volume in 2024 hit $26.1 trillion

• Approximately $5.6 trillion (21.5%) of this volume was linked to real-world payments and asset settlements (Source: mariblock)

Notably, stablecoins' real-world payment volume in 2024 equated to ~42% of Visa's transaction volume, underscoring their accelerating adoption and critical role in the global payments landscape.

Part 2: Stablecoin Transaction Volume Surpasses Traditional Payment Giants

In terms of transaction processing capability, stablecoins have demonstrated potential exceeding that of traditional payment networks. By 2024, stablecoins had evolved from niche crypto instruments into mainstream global financial infrastructure, processing $27.6 trillion in annual transaction volume (Source: BCG), surpassing the combined volume of Visa and Mastercard.

This growth is equally reflected in user engagement metrics:

• Active stablecoin wallets surged from 22.8 million (February 2024) to over 35 million (February 2025), marking a 53% growth.

• In November 2024 alone, 28.5 million unique users conducted over 600 million transactions via stablecoins (Source: mariblock).

Today, stablecoin users span globally. They choose stablecoins not only for the on-chain programmability but also because stablecoins provide a more efficient, low-cost, and borderless solution for value transfer.

Part 3: Core Advantages of Stablecoin Payments

1. Revolutionary Cost Efficiency

Stablecoin payments deliver unparalleled cost advantages compared to traditional payment methods.

• World Bank data shows:

  • Traditional cross-border transfers average 6.35% in fees.

  • Stablecoin transactions on high-performance blockchains like Solana cost under $0.10.

• The fixed fees of traditional wire transfers disproportionately impact small transactions: sending $100 via bank transfer may incur $30 fees (30% cost).

• Stablecoins charge network-based fees - whether transferring $100 or $1 million, costs typically remain below $1.

2. 24/7 Real-Time Settlement

Blockchain-based stablecoins enable:

• Instant settlement without manual processing (minutes vs. days).

• Non-stop availability overcoming banking hour limitations.

• Peer-to-peer transactions eliminating intermediary fees.

3. Transparency & Traceability

Built on blockchain technology, stablecoin payments provide:

• Immutable public records of all transactions

• Real-time fund tracking for users and regulators

• Enhanced trust through verifiable payment trails

This combination of low-cost, always-on accessibility, and unprecedented transparency positions stablecoins as the next-generation payment infrastructure.

Part 4: Key Application Scenarios for Stablecoin Payments

In recent years, stablecoins have been rapidly applied to cross-border trade settlement, inter-enterprise payments, consumer payments, employee salary payments, and other financial and physical investments. This shows a glimpse of how to use stablecoins payments in the real world.

1. Cross-Border Payments & Trade Settlement

Stablecoins have demonstrated significant potential in cross-border payments, particularly in regions with limited or restricted traditional banking services:

• Case Study: Bypassing SWIFT Restrictions, Russian businesses can convert rubles to USDT through OTC channels, directly transfer to overseas partners, who then convert to local fiat, streamlining trade settlements while avoiding complex interbank clearing mechanisms.

• African Freelancer Solution Nigerian developers receiving USDC payments from U.S. clients achieve near-instant settlements, eliminating costly wire transfer fees (typically 6-10%) and 3-5 day delays.

This payment innovation is globally transforming capital flows by delivering efficient, low-cost, and censorship-resistant solutions for international commerce.

2. Merchant Payments and E-commerce

Stablecoins like USDT are becoming mainstream in digital commerce:

• Direct Payments: Online merchants accept stablecoin payments, enabling direct wallet-to-merchant transactions without banking intermediaries.

• High-Value Example: Tether's partnership with the UAE's Reelly Tech facilitates real estate transactions using USDT.

• Retail Adoption:

  • Singapore's Metro Department Store accepts USDT/USDC/WUSD (2025)

  • SPAR (13,900+ stores across 48 countries) is testing crypto payments in Switzerland

3. DeFi, Lending & Wealth Management

• Due to their relatively stable value and high acceptance, stablecoins are widely used in cryptocurrency lending and wealth management. Many DeFi lending protocols (such as AAVE) allow users to use USDT as collateral to borrow other crypto assets, like ETH or USDC, while earning interest in the process.

• Additionally, stablecoins are extensively utilized in DeFi for liquidity provision and yield farming. Users can deposit stablecoins like USDC or DAI into protocols (such as Compound or Curve) to earn interest or mining rewards. When market interest rates are high, the annualized returns can even surpass traditional bank deposit rates.

Part 5: Innovative - Stablecoin Payment Cards

Crypto payment cards, bridging digital assets with real-world spending, are also experiencing explosive growth:

• Market valued at ~$1.3 billion in 2024, projected to reach $2.73 billion by 2033 (8.6% CAGR - Business Research Insights).

• While card margins may be low, they offer immense strategic value in user acquisition, ecosystem building, and capital retention.

1. Market Drivers

Global crypto credit card market growth is mainly driven by the following factors:

• The convergence of digital assets and physical spending needs lowers barriers and enhances convenience.

• The in-depth participation of traditional financial institutions and Web3 institutions has provided a more mature infrastructure and channels for stablecoin payment cards.

• Innovative cards combining DeFi functionalities (e.g., liquidity mining, lending) with holding rewards attract investors.

2. Typical Innovation Cases

TokenPocket, in partnership with Swiss-licensed bank Fiat24, launched the groundbreaking TP Card on the Arbitrum network. It pioneers a "Wallet <> Bank Account NFT <> Debit Card" trifecta:

• How it Works: Users mint a bank account-representing NFT within TokenPocket, complete KYC, and instantly receive a virtual debit card.

• Core Features

  • Card Type: Mastercard/Visa Debit Card (accepted at ~100 million merchants globally). Stablecoin System: EUR24, USD24, CHF24 (Fiat24-issued, 1:1 fiat-backed, fully auditable on-chain).

  • Fees: 1% top-up fee (discountable to 0.5% via referrals), NFT minting fee (0.002 ETH).

  • Asset Sync: Wallet balance = TP Card balance. Seamlessly integrates with Apple Pay, Google Pay, Alipay and Wechat Pay.

  • Coverage: Europe (32 countries, Visa), Asia (Mastercard), Americas (Q2 2025), Physical Cards (2025).

  • Security: Key-based wallet verification, NFT account model, transaction locking, fully traceable on-chain transactions, and user-controlled assets.

For more information about the TP Card, please refer to: TP Card FAQs

Part 6: Positive Changes in Global Regulatory Environment

Major economies are increasingly establishing clear frameworks for stablecoins to ensure financial stability and consumer protection. These frameworks focus on aspects like issuance, reserve requirements, and compliance with regulations like AML and CFT. By doing so, countries aim to mitigate risks such as fraud and market volatility. The goal is to promote innovation in the digital asset space while maintaining the security and integrity of traditional financial systems.

1. Gradual Establishment of Regulatory Frameworks in Europe and the United States

On June 18, 2025, the United States formally enacted the GENIUS Act (Global Enactment for National and International Use of Stablecoins), marking a new phase in global stablecoin regulation.

• The legislation establishes a federal framework for stablecoin issuance and custody

• Mandates 100% reserve backing, regular audits, and licensed operations

The GENIUS Act represents not just regulatory action, but formal recognition of stablecoins' financial significance.

The European Union has implemented the MiCA framework (Markets in Crypto-Assets Regulation) by the end of 2024, accelerating the foundation for global compliance.

The alignment of these two major regulatory systems signifies stablecoins' transition from regulatory gray areas to mainstream legitimacy, paving the way for institutional adoption in:

• Cross-border payments

• DeFi (Decentralized Finance)

• RWA (Real World Assets) tokenization

2. Milestone Significance of Hong Kong's Stablecoin Legislation

On May 21, 2025, Hong Kong's Legislative Council passed the Stablecoin Bill, establishing a formal licensing regime for issuers.

Key requirements:

• Any entity issuing fiat-backed stablecoins in Hong Kong or issuing stablecoins pegged to the Hong Kong dollar must obtain licensing from the Hong Kong Monetary Authority (HKMA) and comply with:

  • Reserve management protocols

  • Asset segregation requirements

  • Guaranteed redeemability

The bill operates under the principle of "same activity, same risk, same regulation", aiming to:

• Balance financial innovation with systemic stability

• Establish a compliant foundation for Hong Kong's virtual asset ecosystem

Frequently Asked Questions (FAQ)

1. What are stablecoins?

For more information on stablecoins, click the link to explore further.

Further Reading：What is Stablecoins?

2. What are stablecoin payments?

Stablecoin payments refer to transferring stablecoins between individuals or entities using blockchain technology for purposes like shopping, paying bills, or sending money. The key advantage is the stable value of the asset used, minimizing the volatility risk associated with other cryptocurrencies.

3. What are the advantages of using USDC over traditional banking methods?

USDC is a type of stablecoin. The main advantages of stablecoin payments include:

1. Cost Efficiency: Sending stablecoins costs about $0.10, while traditional cross-border remittances average 6.35%.

2. Speed: Stablecoin transfers complete in under an hour compared to up to 5 days for bank transfers.

3. Accessibility: Available 24/7, unaffected by banking hours.

Comparison Dimension	Traditional Bank Payments	Stablecoin Payments
Cross-border Transfer Time	3-5 business days	Second-level transactions
Transfer Cost	Average 6.35%	Less than $0.1
Service Hours	Banking business hours	24/7 around the clock
Transparency	Limited	Completely transparent
Coverage Range	Geographically limited	Global coverage

4. How to choose a secure stablecoin wallet?

When choosing a stablecoin wallet, prioritize a self-custodial wallet that gives you full control of your private keys. Look for wallets with robust security features, such as multi-layer encryption and multi-factor authentication. Always download the app from official sources to avoid pirated versions.

For a detailed breakdown of all the key factors to consider, including multi-chain support and transaction fees, read our comprehensive guide: How to Choose Your First Stablecoin Wallet?

5. How are stablecoin payment fees calculated?

Stablecoin payment fees are based on real-time blockchain network costs. TokenPocket offers zero-fee stablecoin transfers on BSC and TRON, optimizing the user experience for stablecoin interactions and reducing transfer costs, making it the most cost-effective stablecoin wallet.

Conclusion

Stablecoin payments are at a critical juncture in the transformation of the global financial system. As a leading multi-chain wallet, TokenPocket stands out with its robust security, extensive chain support, innovative stablecoin payment solutions, and exceptional user experience, making it the ideal choice for users participating in this payment revolution.

Against the backdrop of increasingly clear global regulations and continuous technological advancements, TokenPocket will continue to lead the stablecoin payment ecosystem, providing users with more convenient, secure, and efficient stablecoin payment solutions.

Disclaimer

Cryptocurrency investment and usage involve market, legal, and technical risks. Please exercise caution. Always keep your seed phrases and private keys secure and never disclose them to anyone. This article is for educational purposes only and does not constitute investment advice. Before using stablecoins or wallets, conduct your own research and ensure compliance with local laws and regulations.