The CEO of fintech Pine Labs claims that stablecoin payments will be introduced outside of India

New Delhi: Pine Labs will roll out a stablecoin-backed prepaid card across nine countries in the Middle East, Africa and Southeast Asia by the end of April, marking the first such move by a listed Indian payments major, chief executive Amrish Rau told Reuters.

The Temasek- and Peak XV-backed fintech plans to launch the product in markets with a “stablecoin-friendly stance”, Rau said, declining to specify the countries. He added that Pine Labs does not intend to introduce the product in India or China.

The prepaid card will be funded using stablecoins held in customers’ digital wallets and will enable transactions in local currencies through real-time conversion at the point of sale.

Riding the stablecoin wave

Stablecoins — cryptocurrencies pegged to traditional currencies, typically the U.S. dollar — have gained traction in emerging markets for cross-border transactions. Their total market value has crossed $310 billion, led by dollar-pegged tokens such as Tether and USD Coin.

Global payments companies including Stripe, PayPal and Klarna have already begun integrating stablecoins into their cross-border payment systems.

“Cross-border payments potentially are getting replaced today by stablecoins... these are very real trends which are taking off globally and we are absolutely building for it,” Rau said.

Regulatory contrasts

While India does not prohibit stablecoins, the Reserve Bank of India has cautioned that such instruments could complicate monetary policy and potentially enable illicit transactions. Indian banks and major payments firms such as Walmart-backed PhonePe and Paytm do not currently offer stablecoin-backed payment solutions.

China, meanwhile, recently banned unauthorised offshore issuance of yuan-pegged stablecoins and continues to crack down on virtual currencies.

Expansion and tech focus

Headquartered in India’s National Capital Region, Pine Labs provides merchant payment solutions, including point-of-sale (POS) machines. Since its stock market debut in November, the company’s shares have fallen around 28%, amid intensifying competition in the digital payments space.

Pine Labs has expanded operations to around 20 countries, with overseas business contributing approximately 17% of total revenue, Rau said. The company reported a 24% year-on-year rise in gross revenue to Rs 744 crore ($81.4 million) in the December quarter.

Looking ahead, Rau said Pine Labs will sharpen its focus on artificial intelligence-driven payment solutions, cross-border expansion and further experimentation with stablecoin-based products.

“All tech companies are into stablecoins, they are into AI, they are into cross-border. That’s the way to go. If you don’t capture that opportunity, Indian fintechs are going to get left behind,” he said.