Zepz Introduces Stablecoin Wallet Amid Growing Competition in Money Transfers
With the rise of stablecoin transfers, leading money transfer companies are stepping up to embrace newer trends in cross-border payments. Zepz, the parent company of WorldRemit and Sendwave, has recently launched its own cryptocurrency wallet focused on stablecoin services for its customers.
It seems that while the initial adoption of stablecoins was tied mostly to crypto trading, there’s a noticeable shift towards their use in cross-border payments. Remittance providers are definitely taking note of this development. Compared to traditional methods, stablecoin remittances can be much more cost-effective, especially in high-fee corridors.
The appeal of stablecoins lies in their ability to enable quick transfers at lower costs. In a recent survey, about 26% of U.S. money transfer customers mentioned using stablecoins for international transactions. This growing usage, coupled with the energy from numerous fintech startups exploring these opportunities, poses a risk for established players like Western Union that might fall behind if they don’t adapt.
Earlier this year, MoneyGram set the pace by launching MoneyGram Wallet, kicking off a competitive race in the stablecoin remittance sector. Their platform lets users buy, hold, and send USDC on the Stellar Network, with a global agent network that facilitates fiat payments for recipients.
Following MoneyGram’s lead, other competitors are also eager to develop their stablecoin solutions. For instance, Western Union’s CEO spoke in July about potential plans that might include a stablecoin wallet, viewing stablecoins as an opportunity rather than a threat.
Meanwhile, Remitly had previously announced intentions to introduce a USDC wallet in collaboration with Bridge and Circle this September, although progress appears to have stalled. In the midst of these developments, Zepz launched the Sendwave Wallet on October 24, allowing users to send and receive USDC in Solana. This wallet is integrated with Zepz’s global payments network, offering users the option to withdraw funds in local currency. Looking ahead, the company aims to enhance user experience with stablecoin debit cards and digital payment applications.
