Stablecoin payments are redefining the way PSPs move money. Learn how to implement global, low-cost, and scalable crypto settlement — without rebuilding your infrastructure.

Stablecoins — digital assets pegged to fiat currencies like USD — have evolved far beyond speculative crypto instruments. In 2024, they settled over $27.6 trillion in value, with $5 trillion tied to real-world payments such as merchant payouts, remittances, and cross-border platform transactions.

For Payment Service Providers (PSPs), stablecoins now represent a strategic opportunity to streamline settlement, cut costs, and serve global markets 24/7. The transition from viewing stablecoins as an optional offering to an operational necessity is driven by merchant demand and competitive pressure to reduce settlement times and costs.

Faster, 24/7 Merchant Payouts

Traditional card networks operate with predictable limitations: processing delays, cut-off times, and weekend gaps. For merchants, these limitations translate directly to cash flow constraints and liquidity planning challenges. 

The "Friday problem" — where funds settled after cutoff times remain inaccessible until the following week — has long been accepted as an unavoidable reality of payment processing.

Stablecoins like USDC and USDT fundamentally change this dynamic by providing real-time, cross-border settlement regardless of banking hours:

• Checkout.com has already settled over $300M via USDC for merchants — including weekend payouts when traditional banking rails are closed

• Crypto.com eliminated multi-day FX wires by settling Visa card transactions in USDC

Stablecoin settlements are helping digital merchants unlock capital efficiency at scale. In one case, a global e-commerce platform slashed its working capital requirements by 66% and improved liquidity utilization by 73% by replacing traditional pre-funding models with stablecoin-based treasury flows.

Lower Fees and Improved Margins

Stablecoin payments offer PSPs meaningful cost advantages across multiple layers of the transaction stack:

• Direct Fee Reduction: Stablecoin transfers typically cost 0.5%–3%, compared to ~6% for traditional cross-border methods

• Operational Efficiency: Smart contracts automate reconciliation workflows that previously depended on multiple correspondent banks

• FX Optimization: USD-pegged stablecoins eliminate double conversions in multi-currency transactions, streamlining settlement and reducing slippage

• Interchange Savings: In gaming and e-commerce, stablecoin rails bypass traditional card networks, improving margins on digital and microtransactions

These advantages compound at scale. Juniper Research estimates that businesses will save $15 billion by 2025 and $26 billion by 2028 through stablecoin-based remittances, FX conversion, and payment processing.

Case in point: Telcoin’s corridor between Canada and the Philippines cut remittance costs by 50% by eliminating traditional FX markups and intermediaries.

Illustrative scenario: A $200 telecom payment that might incur $20–30 in bank or FX fees could be completed via stablecoin rails for just cents — a 95–99% cost reduction. For PSPs operating in high-volume, price-sensitive corridors, the margin impact is transformative.

Global Reach and Financial Inclusion

Stablecoins are particularly valuable for PSPs looking to reach markets where:

• Banking infrastructure is slow or fragmented

• FX volatility weakens the value of traditional rails

Central & Southern Asia alone processed $750B+ in crypto flows, led by stablecoin remittances and merchant settlements, demonstrating the demand in regions where traditional financial infrastructure is less developed.

Real-World Applications: Stablecoins in Action

Gaming & Creator Platforms

• Tournament payouts and NFT sales in stablecoins offer stable value and global reach.

• Visa reports increasing demand for stablecoin settlement from merchants in digital goods ecosystems.

E-Commerce & Retail

• Platforms like CoinGate report that stablecoins now account for 35%+ of all crypto payments

• Cross-border purchases in regions like Nigeria and Argentina increasingly rely on stablecoins where stable USD value is preferred

Remittances & Gig Economy

• MoneyGram's partnership with Stellar enables global USDC–cash conversion at 375,000+ agent locations

• Stripe and PayPal now offer stablecoin payouts to freelancers in emerging markets

Telecom & Enterprise B2B Payments

• Telecom operators use stablecoins for roaming and inter-carrier settlements

• Project Pax (MUFG, Mizuho, SMBC) is developing yen-backed stablecoin rails for 24/7 B2B treasury flows

Implementation Challenges: Why It's Not Plug-and-Play

The upside of stablecoin integration is real — but implementing stablecoin payments at PSP scale requires solving for security, compliance, and user experience challenges. The technical complexity creates a barrier to entry that many PSPs struggle to overcome without specialized infrastructure.

Fee Management

Most stablecoins (e.g., USDT, USDC) cannot be used to pay their own network fees. Chains like Ethereum, TRON, and Solana require native tokens (e.g., ETH, TRX, SOL) for transaction execution. This creates a unique operational challenge that doesn't exist in traditional payment rails.

Without automated gas provisioning, transactions will simply fail, creating a poor experience for both merchants and end-users. Consider the workflow implications:

• Each wallet needs sufficient gas token balance at all times

• Gas prices fluctuate, requiring dynamic fee calculation

• Different chains have different gas mechanisms and pricing models

• Gas optimization becomes critical at scale to maintain cost advantages

PSPs that attempt to manage this process manually quickly discover it becomes unsustainable at scale, particularly during high network congestion periods.

KYT and Risk Management

Stablecoin flows are monitored under AML/CTF regimes, with blockchain transactions creating new compliance considerations. PSPs must implement sophisticated systems to screen addresses for:

• Sanctions violations across multiple jurisdictions

• High-risk behavior patterns that may indicate layering or structuring

• Links to hacks, fraud, or darknet markets

• Unusual transaction patterns that deviate from expected merchant behavior

Know-Your-Transaction (KYT) tools from providers like Chainalysis and Elliptic can flag risks, but PSPs also need comprehensive response frameworks — not just alerts. This includes:

• Clear escalation processes for different risk levels

• Documentation standards for regulatory inquiries

• Remediation workflows when suspicious activity is confirmed

• Integration with existing compliance systems and reporting

Token Sweeping and Reconciliation

Platforms using a "one wallet per transaction" or per-user model often suffer from fragmented liquidity. Without proper sweeping mechanisms:

• Treasury management becomes difficult

• Small balances accumulate across numerous wallets

• Reconciliation becomes a resource-intensive burden

Best-in-class infrastructure includes automated sweeping and ledger-syncing tools that ensure efficient capital utilization.

Cross-Chain Bridging

USDC on Solana is not the same as USDC on Ethereum. Without a comprehensive bridge strategy:

• Customers can't deposit and withdraw on their preferred networks

• Liquidity gets trapped or delayed across chains

• Security and latency become major concerns

OTC Access: The Missing Link for Fiat Liquidity

For PSPs adopting stablecoin settlement, integrating with reliable OTC (Over-the-Counter) providers is often the key to operational success. While stablecoins enable fast, borderless digital payments, most PSPs still need to convert those digital assets into local fiat currencies to settle with merchants, suppliers, or banking partners.OTC providers fill this gap by offering:

• Large-volume fiat conversion in regulated environments

• Access to local currencies across multiple markets

• Settlement flexibility aligned with PSP treasury workflows

Incorporating OTC access into the stablecoin payment stack ensures PSPs can move value across both digital and traditional rails — maintaining liquidity, fulfilling merchant obligations, and completing full payment loops.

The PSP’s Stablecoin Infrastructure Checklist

Asia's Stablecoin Momentum: A Strategic Opportunity

Asia leads in both regulatory clarity and real-world usage of stablecoin payment infrastructure, creating a blueprint for PSPs globally.

Policy Clarity Driving Adoption

• Singapore issued the first comprehensive stablecoin licensing framework through the Monetary Authority of Singapore (MAS)

• Hong Kong is fast-tracking regulatory regimes for stablecoins and tokenized payment rails

• Japan's megabanks are developing enterprise-ready stablecoin use cases under government pilots

Real-World Asia Success Stories

• OwlTing (Taiwan): Integrated with MoneyGram for USDC-to-cash corridors across 170+ countries

• Siam Commercial Bank (Thailand): In October 2024, SCB launched a stablecoin-based cross-border payment service after completing the Bank of Thailand's regulatory sandbox, enabling 24/7 international transfers without pre-funded accounts

These developments offer valuable reference points for PSPs exploring expansion in the APAC region, which continues to lead in both regulatory clarity and real-world stablecoin adoption.

Stablecoins As Infrastructure, Not Just a Payment Method

For PSPs, stablecoins represent more than just a new rail — they’re becoming the underlying infrastructure of modern payments: programmable, borderless, and available 24/7/365.

Unlike traditional methods, stablecoins offer:

• Settlement finality in minutes, not days

• Smart contract support for automated payment logic

• Minimal reliance on intermediaries

• Global availability, regardless of banking hours or geography

This shift enables PSPs to rethink their entire settlement architecture — not just tack on another option. The result? A future-proof foundation that supports:

• Faster, always-on operations

• Cost efficiency in high-volume, low-margin corridors

• Stronger merchant retention through improved settlement speed

Integration doesn’t have to take months. With the right infrastructure partner, your PSP can go live in weeks — not quarters.

The operational benefits are immediate. And as stablecoin volumes grow, the long-term strategic upside only accelerates.

Ready to launch in 30 days — without rebuilding your stack? Let’s talk.