TradingKey - As blockchain technology becomes increasingly integrated into mainstream applications and the U.S. stablecoin legislation GENIUS Act advances smoothly, not only Wall Street financial institutions but also major retailers such as Walmart and Amazon are exploring the issuance of their own stablecoins, aiming to reduce payment fees charged by Visa and Mastercard, or even completely bypass third-party payment channels.
According to a report by The Wall Street Journal on June 13, retail giants Walmart (WMT) and Amazon (AMZN) have recently been exploring ways to issue their own stablecoins in the U.S. In addition, companies like Expedia Group and several airlines are reportedly considering similar plans.
Stablecoins are a special type of cryptocurrency designed to maintain low volatility, typically pegged to fiat currencies such as the U.S. dollar.
In the crypto space, dollar-pegged stablecoins function essentially as digitized dollars. Supported by blockchain technology, stablecoins can significantly reduce transaction costs and friction.
For years, retailers have had to pay billions of dollars annually in processing fees to traditional payment systems — particularly when consumers use debit or credit cards for purchases. Visa and Mastercard, as dominant players in the global payments industry, provide convenient payment methods to consumers but have long drawn criticism from merchants for charging high fees due to their monopolistic position.
Legal experts note that these payment networks maintain high fee structures because they operate like a pricing cartel, setting standardized fee schedules that prevent banks from competing aggressively on price.
The emergence of stablecoins could allow merchants to bypass traditional payment networks, improving efficiency and cutting costs — a development that poses a serious challenge to payment incumbents.
In fact, Shopify has already allowed merchants to accept stablecoin-based payments provided by Stripe and Coinbase.
TD Cowen analysts stated that the push toward instant payments is inevitable — and this trend poses a risk to Visa and Mastercard. On June 13, shares of Visa fell 4.99%, while Mastercard declined 4.62%.
Payment giants are not blind to the threat posed by retailers entering the stablecoin space. Last year, Visa launched a platform to help banks issue stablecoins, and Mastercard now offers stablecoin settlement services to merchants.
While the potential disruption is real, there remain significant challenges for retailers seeking to roll out stablecoins at scale:
Nonetheless, with big tech and retail players stepping into the stablecoin arena, the landscape of digital payments is clearly shifting, and longtime leaders like Visa and Mastercard may be facing their biggest disruption yet.