Western Union Launches Stablecoin Card Amid Revenue Slump
Western Union reported a 2% revenue drop and is launching a stablecoin-backed Visa card while cutting costs and awaiting approval for its Intermex acquisition.
Western Union reported a 2% year-over-year decline in revenue to $1 billion for the third quarter, a result driven by a slowdown in its North America retail business. In response to these challenges, President and CEO Devin McGranahan announced that the company is pivoting toward digital growth strategies, specifically highlighting the launch of a stablecoin-backed credit card and significant cost-cutting measures including headcount reductions and the relocation of roles.
What happened
During the company’s third-quarter earnings call on Wednesday, November 4, McGranahan acknowledged that disruptions to Western Union’s legacy business model had outpaced its ability to transform its cost structure. The revenue dip continued a trend seen in the second quarter, which McGranahan previously attributed to changes in immigration policy affecting the Americas retail business.
To address these headwinds, Western Union has taken several concrete steps:
Reduced its headcount by more than 650 employees.
Deployed artificial intelligence across several operational functions.
Repositioned a regional operating center and approximately 800 roles from Costa Rica to other countries.
“We experienced challenges earlier this year as the disruption to our legacy business model outpaced our ability to transform our cost structure,” McGranahan said. He added that the company is now moving its cost structure back into alignment with the pace of change in the business.
The stablecoin strategy
A central part of Western Union’s growth plan involves its U.S. dollar-denominated payment stablecoin, USDPT, which launched in May. The company integrated USDPT with crypto exchange Bybit in June, creating on- and off-ramps in select Latin American markets.
In August, Western Union launched Stablecard, a product that allows users to receive funds and store value in USDPT within a digital wallet. Users can then spend this value using a USDPT-backed Visa secured credit card anywhere Visa is accepted. McGranahan emphasized that the product is designed for markets where consumers face currency volatility or limited access to dollar-denominated value, aiming to provide a simple, compliant experience rather than requiring customers to become crypto experts.
Why it matters for investors and consumers
For investors, this shift signals a company attempting to modernize a traditional money-transfer giant in a competitive digital landscape. The focus on stablecoins and AI suggests Western Union is trying to capture new revenue streams from cross-border digital payments while simultaneously shrinking its overhead. The pending acquisition of International Money Express (Intermex) for $500 million, announced in August 2025, remains a key component of this strategy to bolster its U.S. retail presence and accelerate digital customer acquisition.
For consumers, particularly in regions with volatile currencies, the Stablecard offers a potential tool to preserve value in U.S. dollars. However, the practical utility depends on the ease of access and the acceptance of the underlying stablecoin infrastructure. The company’s emphasis on a “simple, compliant experience” suggests an effort to lower the barrier to entry for users unfamiliar with cryptocurrency.
What happens next
The most immediate hurdle for Western Union is the regulatory approval for the Intermex acquisition. While the company received approval from New York regulators in August, it faces further review in California. McGranahan stated that the company recently received feedback from a California regulator and is actively working to determine an acceptable path forward.
Time is a critical factor, as November 10, 2026, is the outside date included in the merger agreement. On that date, either party has the right to terminate the deal. Investors will be watching closely to see if Western Union can secure the necessary California approval before this deadline, as the acquisition is central to its plan to strengthen its retail footprint in the U.S.
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