According to ChainCatcher, as crypto card infrastructure company Rain closed a $250 million Series C funding round this month with a valuation nearing $2 billion, the competition in the crypto payment space around "how stablecoins can be truly spent" is rapidly intensifying. Data from research firm Artemis shows that crypto card payment volume is growing at an annualized rate of 106%, with annualized transaction value reaching $18 billion, approaching the $19 billion of peer-to-peer stablecoin transfers. Artemis researcher Patrick Kim predicts that by the end of this year, crypto cards will become the primary retail payment use case for stablecoins. Currently, this "payment stack war" is primarily playing out along three paths: first, the full-stack issuance model. Rain and Hong Kong-based Reap have become Visa's principal members, integrating full infrastructure such as card issuance and settlement, bypassing the traditional banking system. Rain disclosed that its card user base has grown 30 times year-over-year, with payment volume increasing 38 times, and the platform has already attracted over 200 clients. Second, the orchestration layer model. Stripe's $1.1 billion acquisition of Bridge and its $10 billion valuation for Zero Hash represent major bets by large tech and financial infrastructure companies on "chain-agnostic" solutions, enabling merchants to receive and settle stablecoins without concern for the underlying blockchain. Third, payment-dedicated blockchains. Some new players argue that general-purpose chains like Ethereum were not designed for payments. Stable, backed by Bitfinex, will launch a blockchain dedicated to payments by the end of 2025, and has already secured about $2 billion in pre-deposited funds, aiming to provide a stablecoin transfer experience without additional gas costs. From a geographical perspective, emerging markets are the core drivers of stablecoin payment growth. The real payment demand in Africa, Latin America, and South Asia is significantly higher than in the US and Europe. Data shows that Visa currently holds over 90% of the share in on-chain card payments, largely due to its native stablecoin settlement pilot supporting USDC, while USDT has not yet been included in the system.
Rain Nears $2B Valuation, Sparking Competition in Stablecoin Payment Stacks
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Summary
Rain's $250 million Series C funding round, which has pushed its valuation close to $2 billion, has intensified competition in the stablecoin payment space. According to crypto news, Artemis data shows that crypto card payments are growing at an annual rate of 106%, with $18 billion in transaction volume. Rain and Reap are targeting full-stack solutions by leveraging their Visa membership. Stripe's acquisition of Bridge and Zero Hash reflects a blockchain-agnostic strategy. Stable, backed by Bitfinex, is building a payment-focused blockchain with $2 billion in pre-funded capital. Adoption is being driven by emerging markets, where Visa holds over 90% of the on-chain card payment market share. News about interest rates indirectly affects stablecoin adoption, as traditional banking alternatives gain traction in high-growth regions.
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