Samsung plans to expand stablecoin support for its digital wallet
- Key insight: Samsung Wallet will add support for the USDC stablecoin for remittances and other payments.
- What’s at stake: Digital wallets are adding more features to attract younger users.
- Forward look: The feature will launch in late October.
International transfers such as remittances are considered the best bet to boost the
Processing Content
Samsung Wallet in late October plans to support USDC transfers to digital wallets and bank accounts in more than 60 countries via Samsung Galaxy devices.”It’s not selling crypto to crypto. It’s more of a mass market general consumer product,” Kevin Lehtiniitty, CEO of Borderless.xyz, told American Banker.
Borderless sells what it calls a “connective tissue” for international stablecoin transactions by partnering with licensed financial institutions. Borderless is powering Samsung Wallet’s ability to process stablecoin payments involving different bank accounts.
“By building stablecoin support into Samsung’s wallet, the user doesn’t need a new app or to sign up for a new account. They can just send money home,” Lehtinitty said.
Samsung did not return a request seeking comment. In a release Woncheol Chai, executive vice president and head of the digital wallet team at the Mobile Experience Business at Samsung Electronics, said: “Sending money abroad should feel as convenient as using the wallet already on your phone. We’re bringing USDC transfers into Samsung Wallet so eligible Galaxy users can get started without installing another app or managing private keys themselves.”By integrating stablecoin into Galaxy devices via Samsung Wallet, Samsung is attempting to reach mainstream users by removing steps such as installing separate crypto apps, creating wallets, and managing private keys. Initially, the USDC transfer feature will be available to 82 million U.S. Galaxy devices in the U.S.
Other partners include Bastion, a licensed stablecoin custodian and infrastructure seller, which will power the cross-border payment framework for Samsung Wallet’s new stablecoin capabilities.
Bastion has partnered with Coinbase as a sub-custodian, covering USDC in Samsung Wallet via Coinbase Prime Vault. Samsung Galaxy devices act as the gateway, requiring biometric authentication on registered devices to initiate transfers.
To access the feature, users select “Buy Stablecoin,” with USDC appearing as the default dollar stablecoin.
Samsung is considering other capabilities, such as the ability for eligible users to pay with stablecoins online or by tapping Galaxy devices in stores.
Among other large digital wallets, Apple Pay’s partners include crypto payments network Mesh. Apple’s Mesh collaboration enables payers to use crypto to make payments, while merchants have the option to settle in USDC and other stablecoins. Google has led an
Samsung is updating its stablecoin capabilities as digital wallets face pressure to expand consumer relationships by adding new features.
In a research note, Juniper Research said “as the digital wallet space becomes increasingly saturated, differentiation using rewards and other capabilities will be vital to success…digital wallet platforms should also prioritize deploying solutions which target the underbanked in emerging markets. As mobile money services aim to offer banking-like services, digital wallet platforms must evolve to provide more advanced capabilities, or they will lose market share to more mainstream banking platforms.”
There is also pressure on remittance firms to add new digital options, according to Zepz, a global payments company. Read more:
Zepz’s research found that adults aged 25-34 now represent the largest sender group across the company’s network, accounting for 30% of all senders.
“Having grown up with mobile banking and digital-first financial services, this generation expects cross-border finance to be as fast, intuitive and flexible as the on-demand apps they use every day,” Zepz’s research said. “As their influence grows, they are raising the standard for the industry, accelerating demand for services that offer greater speed, simplicity, control and flexibility.”
