Mastercard says stablecoins remain far from mainstream use, citing limited real-world utility despite strong underlying technology.

While stablecoins offer features like fast transactions, low fees, and round-the-clock availability, Mastercard believes these are not enough to make them viable for everyday payments.

According to Bloomberg, Chief Product Officer Jorn Lambert said stablecoins still lack the essential elements that drive consumer adoption, such as a smooth user experience, broad distribution and ease of use.

Since at least 2021, Mastercard has been building out partnerships and infrastructure to support stablecoin transactions.

These efforts include a collaboration with Paxos to support the minting and redemption of the USDG stablecoin, and ongoing support for tokens like USDC from Circle, PYUSD from PayPal, and FIUSD from Fiserv.

Despite these developments, Lambert pointed out that around 90 percent of stablecoin usage is still concentrated in cryptocurrency trading.

Some platforms like Shopify and Coinbase have started enabling stablecoin payments for consumers, but uptake remains limited due to friction at checkout and unclear benefits compared to traditional payment methods.

Stablecoins were initially promoted as a way to bypass card networks and lower transaction costs.

However, companies like Mastercard are now reframing their role, positioning themselves as infrastructure providers that can help stablecoins scale securely through integration with existing financial systems.

Raj Seshadri, Mastercard’s Chief Commercial Payments Officer, noted that the real cost of using stablecoins goes beyond the token itself.

It includes conversion to and from fiat currency, compliance requirements, and settlement processes, all of which add layers of complexity to what should be a seamless transaction.

Beyond the private sector, central banks and financial regulators are also paying close attention to stablecoins.

Lambert said banks are weighing whether to issue their own stablecoins or deposit tokens to maintain control over customer funds.

At the same time, governments are looking to promote domestic digital currency innovation to avoid increased dependence on foreign currencies.

Featured image: Edited by Fintech News Singapore, based on image by Freepik