Visa, Mastercard slip after WSJ report on retailers exploring own stablecoins

Shares of payments processors Visa V.N and Mastercard MA.N fall 4.7% and 4.3%, respectively, hitting their lowest in more than a month

Walmart WMT.N, Amazon AMZN.O and Expedia Group EXPE.O are among companies exploring their own stablecoins, the Wall Street Journal reports

Stablecoins are a type of cryptocurrency designed to avoid the wild volatility seen in tokens like bitcoin

With prices pegged to a stable asset, they have long been viewed as a viable and low-cost mode of payment, especially for cross-border transactions

Supporters say they can eliminate the need for intermediaries such as Visa and Mastercard, which charge billions in fees every year

KBW analysts say while the reported stablecoins by WMT, AMZN and EXPE would present near-term risks, some fears may be exaggerated

*A spokesperson for Mastercard referred Reuters to a previous statement by its chief product officer Jorn Lambert, who had said the company believes "in the potential of stablecoins to streamline payments"

Visa did not respond to a request for comment

Previous initiatives by merchants to bypass Visa and Mastercard have not gained widespread traction - KBW

PayPal PYPL.O shares also fall 4.8%

As of last close, Visa up 17.5% and Mastercard up 11.9%, while PYPL down 12.4% YTD