If payments used to be plumbing, today they’re geopolitics with a UX. The biggest fight in finance isn’t about who owns the customer; it’s about which rail the money rides. As McKinsey puts it, “𝗵𝗼𝘄 𝗺𝗼𝗻𝗲𝘆 𝗺𝗼𝘃𝗲𝘀 𝗶𝘀 𝗯𝗲𝗰𝗼𝗺𝗶𝗻𝗴 𝗮𝘀 𝗰𝗿𝗶𝘁𝗶𝗰𝗮𝗹 𝗮𝘀 𝗵𝗼𝘄 𝗺𝘂𝗰𝗵” And the market is voting with flow: instant rails, tokenized dollars, agentic checkout, and 𝘆𝗶𝗲𝗹𝗱 - 𝗻𝗼𝘁 𝗽𝗲𝗿 𝗱𝗮𝘆 𝗯𝘂𝘁 𝗽𝗲𝗿 𝘀𝗲𝗰𝗼𝗻𝗱. The question for operators is no longer if they add stablecoins, but where, how fast, and with what trust model.

This piece applies the most useful ideas of McKinsey’s 2025 Global Payments Report to a practical roadmap for USDC/PYUSD on Stellar.

McKinsey: “𝗣𝗮𝘆𝗺𝗲𝗻𝘁𝘀… 𝗵𝗮𝘃𝗲 𝗯𝗲𝗰𝗼𝗺𝗲 𝗮 𝗰𝗼𝗺𝗽𝗲𝘁𝗶𝘁𝗶𝗼𝗻 𝗮𝗺𝗼𝗻𝗴 𝘃𝗮𝗿𝗶𝗼𝘂𝘀 𝗺𝗮𝗿𝗸𝗲𝘁 𝘀𝘆𝘀𝘁𝗲𝗺𝘀,” each optimized for different philosophies—control vs. decentralization, cards vs. A2A vs. private rails. (2025 Global Payments Report)

Why stablecoins—and why now

Three forces from McKinsey’s analysis land directly on stablecoins:

1. 𝗠𝗮𝗿𝗴𝗶𝗻𝘀 𝗰𝗼𝗺𝗽𝗿𝗲𝘀𝘀 𝗮𝘁 𝘁𝗵𝗲 𝘁𝗼𝗽 𝗹𝗶𝗻𝗲. Card economics face fee pressure; A2A grows but monetization is tricky. McKinsey expects ~4% industry revenue CAGR through 2029 as net-interest tailwinds fade. Translation: you need new rails with better unit economics and programmable value-add. (Report)

2. 𝗥𝗮𝗶𝗹𝘀 𝗳𝗿𝗮𝗴𝗺𝗲𝗻𝘁, 𝘀𝗼𝘃𝗲𝗿𝗲𝗶𝗴𝗻𝘁𝘆 𝗿𝗶𝘀𝗲𝘀. The world is turning into a “mosaic of regions with different standards… and trust anchors.” Stablecoins are the bridge asset that can ride multiple rails, 24/7/365, with composable compliance. (Report)

3. 𝗔𝗜 𝗺𝗼𝘃𝗲𝘀 𝗱𝗲𝗰𝗶𝘀𝗶𝗼𝗻𝘀 𝘁𝗼 𝘁𝗵𝗲 𝗲𝗱𝗴𝗲. Or as McKinsey advises: “𝗠𝗼𝘃𝗲 𝗶𝗻𝘁𝗲𝗹𝗹𝗶𝗴𝗲𝗻𝗰𝗲 𝘁𝗼 𝘁𝗵𝗲 𝗲𝗱𝗴𝗲—routing, fraud, and liquidity embedded in agents, APIs, and contracts.” Smart money needs smart rails. (Report)

Stablecoins are already a material flow class, and they’re getting more mainstream by the quarter. 𝗨𝗦𝗗𝗖 and now 𝗣𝗬𝗨𝗦𝗗 from Paypal on Stellar hit all-time highs in 2025, backed by expanding real-world-asset (RWA) activity on the network, and cash in/out remains available via MoneyGram ramps—precisely the kind of fiat on/off capture traditional rails can’t easily match. stellar.org+2stellar.org+2

On the numbers: 𝗨𝗦𝗗𝗖 𝗰𝗶𝗿𝗰𝘂𝗹𝗮𝘁𝗶𝗻𝗴 𝗼𝗻 𝗦𝘁𝗲𝗹𝗹𝗮𝗿 𝗶𝘀 ~$𝟮𝟮𝟬–𝟮𝟮𝟱𝗠 as of this fall (about 0.3% of total USDC). Not huge compared to Ethereum/Solana—yet—but the composition matters: more remittance, treasury, and RWA flows; fewer whale arbitrages. That mix is where programmable payments can actually monetize. USDC Dashboard

Meanwhile, Stellar’s smart-contracts stack (Soroban) is live on mainnet, enabling on-chain orchestration of KYC’d wallets, time-bound escrows, and agent-driven routing—exactly the “edge intelligence” McKinsey argues will define the next era. Stellar Developers

McKinsey: “𝗧𝗿𝗲𝗮𝘁 𝗶𝗻𝘁𝗲𝗿𝗼𝗽𝗲𝗿𝗮𝗯𝗶𝗹𝗶𝘁𝘆 𝗮𝘀 𝗶𝗻𝗳𝗿𝗮𝘀𝘁𝗿𝘂𝗰𝘁𝘂𝗿𝗲. Cross-border and multirail transactions will define any foreseeable future scenario.” (2025 Global Payments Report)

What PYUSD + USDC on Stellar actually unlock

1. 𝗥𝗲𝗺𝗶𝘁𝘁𝗮𝗻𝗰𝗲𝘀 𝘄𝗶𝘁𝗵𝗼𝘂𝘁 𝘁𝗵𝗲 𝘁𝗮𝘅 𝗼𝗻 𝘁𝗶𝗺𝗲.
   Cash-in at retail via MoneyGram, settle as USDC in seconds, cash-out at the edge—or hold PYUSD/USDC and spend from a wallet. You convert “weekend risk” to “always-on funding.” For corridors with volatile FX or capital-controls friction, stablecoins plus local cash ramps are a new default. stellar.org+1

2. 𝗠𝗲𝗿𝗰𝗵𝗮𝗻𝘁 𝗮𝗰𝗰𝗲𝗽𝘁𝗮𝗻𝗰𝗲 𝘁𝗵𝗮𝘁 𝗶𝘀𝗻’𝘁 𝗷𝘂𝘀𝘁 𝗰𝗵𝗲𝗮𝗽𝗲𝗿—𝗶𝘁’𝘀 𝘀𝗺𝗮𝗿𝘁𝗲𝗿.
   McKinsey notes fee pressure will squeeze legacy economics. With Stellar’s low fees and programmable settlement, you can drive instant net settlement, automate surcharging logic by rail, and offer dynamic working-capital (release funds as risk scores clear). That’s margin you don’t get from a flat interchange.

3. 𝗕𝟮𝗕 𝘁𝗿𝗲𝗮𝘀𝘂𝗿𝘆 𝘁𝗵𝗮𝘁 𝗯𝗲𝗵𝗮𝘃𝗲𝘀 𝗹𝗶𝗸𝗲 𝘀𝗼𝗳𝘁𝘄𝗮𝗿𝗲.
   Automate payables with on-chain escrow, release on delivery events, and auto-sweep idle balances into a yield-bearing, KYC’d RWA pool—subject to policy. That’s “programmable liquidity” in McKinsey’s language, and it’s a real P&L lever for mid-market CFOs. (Report)

4. 𝗔𝗴𝗲𝗻𝘁𝗶𝗰 𝗰𝗼𝗺𝗺𝗲𝗿𝗰𝗲, 𝗯𝘂𝘁 𝗮𝘂𝗱𝗶𝘁𝗮𝗯𝗹𝗲.
   AI agents can price routes (card vs A2A vs stablecoin), pick settlement rails, and pre-clear sanctions/KYB. Stellar’s deterministic fees and Soroban contracts let you 𝗲𝘅𝗽𝗹𝗮𝗶𝗻 what an agent did—important for ops and regulators. Stellar Developers

McKinsey: “𝗠𝗮𝗸𝗲 𝗰𝗼𝗺𝗽𝗹𝗶𝗮𝗻𝗰𝗲 𝗽𝗿𝗼𝗴𝗿𝗮𝗺𝗺𝗮𝗯𝗹𝗲. Modular policy engines… will supersede manual workflows.” (2025 Global Payments Report)

Two futures—and how Stellar fits

McKinsey sketches two scenarios:

• 𝗠𝘂𝗹𝘁𝗶𝗿𝗮𝗶𝗹 𝘄𝗶𝘁𝗵 𝗴𝗹𝗼𝗯𝗮𝗹 𝗽𝗮𝘀𝘀𝗸𝗲𝘆𝘀. Rails proliferate, but standards and aggregators keep them stitched. In this world, 𝗦𝘁𝗲𝗹𝗹𝗮𝗿 = 𝘁𝗵𝗲 𝗹𝗼𝘄-𝗳𝗿𝗶𝗰𝘁𝗶𝗼𝗻 𝘀𝗲𝘁𝘁𝗹𝗲𝗺𝗲𝗻𝘁 𝗿𝗮𝗶𝗹 for everyday money movement, with USDC/PYUSD as the interop dollar. Gateways (PayPal, exchanges, fintech PSPs) become the passkeys. (Report)

• 𝗘𝘀𝗰𝗮𝗹𝗮𝘁𝗲𝗱 𝗳𝗿𝗮𝗴𝗺𝗲𝗻𝘁𝗮𝘁𝗶𝗼𝗻. Regions double down on sovereignty. 𝗦𝘁𝗲𝗹𝗹𝗮𝗿’𝘀 𝗯𝗿𝗼𝗸𝗲𝗿 𝗿𝗼𝗹𝗲 𝗲𝘅𝗽𝗮𝗻𝗱𝘀 𝘄𝗶𝘁𝗵 𝗖𝗶𝗿𝗰𝗹𝗲 𝗖𝗖𝗧𝗣𝘃𝟮 (𝗰𝗿𝗼𝘀𝘀 𝗰𝗵𝗮𝗶𝗻 𝗰𝗼𝗺𝗽𝗮𝘁𝗶𝗯𝗶𝗹𝗶𝘁𝘆): anchors and licensed partners bridge local schemes (PIX/UPI/SEPA Instant) to on-chain dollars with embedded compliance. Stablecoins become the de facto cross-region clearing asset when correspondent banking is slow or constrained. (Report)

Either way, your architecture should assume 𝗽𝗼𝗹𝗶𝗰𝘆 𝘃𝗮𝗿𝗶𝗮𝗻𝗰𝗲 𝗯𝘆 𝗿𝗲𝗴𝗶𝗼𝗻, 𝗿𝗮𝗶𝗹 𝗱𝗶𝘃𝗲𝗿𝘀𝗶𝘁𝘆 𝗯𝘆 𝘂𝘀𝗲 𝗰𝗮𝘀𝗲, and 𝗽𝗿𝗼𝗴𝗿𝗮𝗺𝗺𝗮𝗯𝗹𝗲 𝗰𝗼𝗻𝘁𝗿𝗼𝗹𝘀 at the wallet/contract layer.

Our take on the 12-month playbook (USDC/PYUSD on Stellar)

For wallets & neobanks

• 𝗦𝗵𝗶𝗽 𝘁𝗿𝗶-𝗿𝗮𝗶𝗹 𝗰𝗵𝗲𝗰𝗸𝗼𝘂𝘁 (card + A2A + stablecoin) with policy-driven routing: if cart is cross-border or out-of-hours, prioritize USDC/PYUSD on Stellar; else default to cheapest success path. Leverage Stripes’ Bridge Stellar Integration

• 𝗔𝗱𝗱 𝗰𝗮𝘀𝗵 𝗿𝗮𝗺𝗽𝘀 where your customers live (MoneyGram via vetted partners). Ladder KYC tiers by limit, not by feature. stellar.org+1

• 𝗘𝘅𝗽𝗹𝗮𝗶𝗻𝗮𝗯𝗶𝗹𝗶𝘁𝘆 𝗯𝘆 𝗱𝗲𝘀𝗶𝗴𝗻. Every on-chain movement gets a human-readable “why this rail” receipt. That’s brand trust—and regulator-ready. (Report)

For merchant PSPs & orchestration layers

• 𝗜𝗻𝘀𝘁𝗮𝗻𝘁 𝘀𝗲𝘁𝘁𝗹𝗲𝗺𝗲𝗻𝘁 𝗮𝘀 𝗦𝗞𝗨. Offer T+0 for stablecoin receipts with auto-FX to local fiat via authorized anchors; price it as a working-capital product, not just a payment fee.

• 𝗖𝗵𝗮𝗿𝗴𝗲𝗯𝗮𝗰𝗸-𝗲𝗾𝘂𝗶𝘃𝗮𝗹𝗲𝗻𝘁𝘀. Pair escrow + dispute APIs to mimic chargeback protections where card rails are entrenched. The UX wins merchants over; the risk model wins compliance.

For banks & treasurers

• 𝗦𝘁𝗮𝗯𝗹𝗲𝗰𝗼𝗶𝗻 𝗼𝗽𝗲𝗿𝗮𝘁𝗶𝗻𝗴 𝗮𝗰𝗰𝗼𝘂𝗻𝘁. Keep a controlled slice of payables in USDC; Earn yield on a per second basis or sweep to fiat at day-end. Back office reconciliation feeds from Soroban events.

• 𝗥𝗪𝗔 𝗿𝗮𝗶𝗹𝘀. Integrate on-chain, KYC’d yield products as “float with rules.” You’re not chasing crypto yield; you’re automating the treasury ladder (via Onfido USDY, USTRY or CETES). stellar.org

For PayPal/PYUSD stakeholders

• 𝗖𝗼𝗺𝗽𝗹𝗲𝘁𝗲 𝘁𝗵𝗲 𝗦𝘁𝗲𝗹𝗹𝗮𝗿 𝗹𝗮𝘂𝗻𝗰𝗵 (post-approval) with merchant stories: micro-ticket, cross-border, weekend funding. Bundle 𝗩𝗲𝗻𝗺𝗼/𝗣𝗮𝘆𝗣𝗮𝗹 𝗿𝗲𝘄𝗮𝗿𝗱𝘀 with on-chain settlement to nudge balances to live on programmable rails. PayPal Newsroom+1

For regulators & policymakers

• Treat 𝗼𝗻-𝗰𝗵𝗮𝗶𝗻 𝗮𝘁𝘁𝗲𝘀𝘁𝗮𝘁𝗶𝗼𝗻𝘀 and 𝗽𝗿𝗼𝗴𝗿𝗮𝗺𝗺𝗮𝗯𝗹𝗲 𝗽𝗼𝗹𝗶𝗰𝘆 as substitutes for paper audits—faster, more granular, easier to supervise. Publish “good patterns” libraries for AML/KYB modules the market can reuse. (Report)

The measurable edge

• 𝗗𝗶𝘀𝘁𝗿𝗶𝗯𝘂𝘁𝗶𝗼𝗻: PayPal/Venmo user bases are a turnkey activation surface for PYUSD; Stellar brings the low-fee, global cash ramp. PayPal Investor Relations+1

• 𝗖𝗼𝘀𝘁𝘀: Deterministic, sub-cent network fees on Stellar are a structural advantage in micro-value and remittance. (And fees are programmable into pricing logic.)

• 𝗟𝗶𝗾𝘂𝗶𝗱𝗶𝘁𝘆 & 𝘁𝗿𝘂𝘀𝘁: 𝗨𝗦𝗗𝗖 𝗼𝗻 𝗦𝘁𝗲𝗹𝗹𝗮𝗿 is growing, with 2025 highs and a current float around the low-$200Ms—sufficient to support consumer-grade corridors while avoiding speculative whiplash. stellar.org+1

• 𝗣𝗿𝗼𝗴𝗿𝗮𝗺𝗺𝗮𝗯𝗶𝗹𝗶𝘁𝘆: Soroban mainnet unlocks agentic routing, escrow, and compliance at the contract layer—the exact “edge intelligence” McKinsey prescribes. Stellar Developers

McKinsey: “𝗪𝗶𝗻𝗻𝗲𝗿𝘀 𝘄𝗶𝗹𝗹 𝗰𝗿𝗲𝗮𝘁𝗲 𝗶𝗻𝘁𝗲𝗹𝗹𝗶𝗴𝗲𝗻𝘁, 𝗲𝗺𝗯𝗲𝗱𝗱𝗲𝗱, 𝘀𝗲𝗰𝘂𝗿𝗲… 𝗲𝘅𝗽𝗲𝗿𝗶𝗲𝗻𝗰𝗲𝘀 𝗰𝗲𝗻𝘁𝗲𝗿𝗲𝗱 𝗮𝗿𝗼𝘂𝗻𝗱 𝗮𝗴𝗲𝗻𝘁𝗶𝗰 𝗷𝗼𝘂𝗿𝗻𝗲𝘆𝘀 that anticipate needs while demystifying complex technologies.” (2025 Global Payments Report)

What to build this quarter

• 𝗔𝗴𝗲𝗻𝘁𝗶𝗰 𝗿𝗼𝘂𝘁𝗲𝗿 𝗠𝗩𝗣. Given a cart + customer profile, choose rail (card/A2A/USDC/PYUSD), fee model, and settlement timing; emit an audit trail.

• 𝗖𝗮𝘀𝗵-𝗶𝗻/𝗼𝘂𝘁 𝗰𝗼𝗿𝗿𝗶𝗱𝗼𝗿𝘀. Stand up 2–3 corridors with MoneyGram-backed cash ramps; measure drop-off vs. card. stellar.org+1

• 𝗣𝗼𝗹𝗶𝗰𝘆 𝗲𝗻𝗴𝗶𝗻𝗲 𝘃𝟭. Modular AML/KYC rules as code; log every deny/allow with explainable features for compliance. (Report)

• 𝗠𝗲𝗿𝗰𝗵𝗮𝗻𝘁 𝗶𝗻𝘀𝘁𝗮𝗻𝘁-𝗽𝗮𝘆. Offer T+0 settlement with optional auto-FX; publish a cost-to-cashness calculator.

The punchline

McKinsey argues the industry is “𝗳𝘂𝗻𝗱𝗮𝗺𝗲𝗻𝘁𝗮𝗹𝗹𝘆 𝗿𝗲𝗱𝗲𝗳𝗶𝗻𝗶𝗻𝗴 𝗶𝘁𝘀 𝗳𝗼𝘂𝗻𝗱𝗮𝘁𝗶𝗼𝗻𝗮𝗹 𝘀𝘁𝗿𝘂𝗰𝘁𝘂𝗿𝗲𝘀”—not just adding new tech. Stablecoins are the first truly programmable consumer-grade rail with institutional-grade distribution. Stellar is the pragmatic path to put that rail in people’s hands—cheaply, globally, and with explainable controls.

We recommend chasing the right tail of use cases—remittances, micro-payouts, cross-border SMBs—where programmable dollars dominate. And in the end —merchants want cash faster, consumers want fees lower, and regulators want better telemetry. The third rail isn’t dangerous anymore; it’s how you finally get paid on time and earn Yield in real time.