Colombians Send Money Faster, Cheaper with MoneyGram’s Blockchain Breakthrough

MoneyGram, a leading global money transfer company, has launched a mobile application in Colombia that leverages stablecoin technology to facilitate faster and more cost-effective cross-border transactions. The app, now available to users in the country, is part of MoneyGram’s broader strategy to modernize its payment infrastructure and reduce the high fees typically associated with traditional remittance services .

The new app utilizes USDC, a stablecoin pegged 1:1 to the U.S. dollar and backed by regulated financial institutions, to enable near-instantaneous transfers between users in Colombia and other international markets. This move marks one of the first major deployments of stablecoin-based remittances by a traditional financial services provider in the Latin American region .

According to MoneyGram, the introduction of the app is expected to significantly reduce transaction costs for Colombian users, particularly those sending money to family members in the United States. The company stated that the use of blockchain technology allows for lower overhead and faster processing times compared to legacy systems .

The app is also designed to offer an improved user experience, with features such as real-time transaction tracking, low balance thresholds, and enhanced security protocols. MoneyGram emphasized that the platform adheres to regulatory compliance standards, including know-your-customer (KYC) and anti-money laundering (AML) requirements .

In a statement, a company spokesperson noted that the deployment in Colombia is a pilot initiative, with potential for expansion to other markets in the region. The spokesperson added that the response from early adopters has been positive, with users citing the convenience and speed of the service as key advantages .

Analysts suggest that MoneyGram’s move into stablecoin-based payments aligns with a growing trend of financial institutions integrating blockchain technology to enhance remittance services. As stablecoins continue to gain traction among both consumers and regulators, they are increasingly seen as viable alternatives to traditional wire transfers .