- US retailers like Amazon and Walmart explore stablecoins to cut transaction costs.
- GENIUS Act could reshape payments by regulating dollar-backed stablecoin use.
- Stablecoins offer instant settlement, boosting liquidity and global supply chains.
Major U.S. retailers, including Amazon and Walmart, are exploring the creation of their own stablecoins in a bid to reduce rising payment processing costs and accelerate cash flow. These digital tokens, typically pegged to the US dollar, promise faster settlements and lower transaction fees compared to traditional card payments.
As merchants grow increasingly frustrated with credit card giants like Visa and Mastercard, stablecoins have emerged as a practical alternative that could reshape how American consumers pay for everyday goods and services.
A Move to Bypass Costly Credit Card “Interchange” Fees
According to The Wall Street Journal report, Credit card payments remain the norm, but for retailers, they are costly. Every transaction comes with interchange fees that usually range from 1% to 3%.
For companies processing billions in payments, these fees significantly erode margins. Hence, some of the nation’s largest retailers are now considering issuing their own stablecoins to bypass these fees altogether.
Besides Amazon and Walmart, travel firms like Expedia and even major airlines are evaluating similar moves. The appeal is clear stablecoin transactions can settle almost instantly, unlike the traditional banking system which can take days. Consequently, businesses can improve liquidity, pay suppliers faster, and better manage global logistics.
Related: Stablecoin Market Hits Record $228 Billion as Global Banks and Corporations Pile In
Legislative Support Could Be Key
The timing of these developments is closely tied to the potential passage of the GENIUS Act, which aims to regulate dollar-backed stablecoins in the US. The bill requires issuers to maintain full reserves, follow anti-money laundering rules, and provide regular financial disclosures.
Significantly, the act also lays the groundwork for more competition in the payment ecosystem, which many retailers have been demanding for years.
Moreover, banks such as JPMorgan and Citigroup are also preparing joint stablecoin initiatives to protect their market share. However, the GENIUS Act faces political hurdles. Over 120 amendments, some unrelated to stablecoins, have been proposed. These include controversial credit card fee caps and trade-related provisions.
Competitive Payments Future
If passed, the GENIUS Act could open the door to a more competitive and efficient payments landscape. This could reduce reliance on traditional card networks and empower merchants to control how they receive payments.
Related: Future of Finance: Stablecoins Emerge as Key ‘Infrastructure’, US & Hong Kong Advance Laws
Additionally, stablecoins could reduce barriers for international commerce and encourage more transparent, real-time financial transactions.
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