Matthews began as a small farming community in the 1800s. Cotton farmers completely cleared the land, leaving tree stumps in every direction; thus, the first name for the community became Stumptown. In 1825, the name changed to Fullwood for John Fullwood who operated Stagecoach Inn and became the first postmaster for this area. Nearby residents received mail at the inn, and the stagecoach made regular stops on its way from Charlotte to Monroe.
The name of the town was changed to Matthews in honor of Watson Matthews, a director of the railroad. The town was incorporated in 1879 and the first census in 1880 showed a population of 191.
