Stablecoins are emerging as a formidable competitor to Visa and Mastercard, offering near-zero transaction fees compared to the 3.5% typically charged by credit cards. U.S. merchants currently pay over $100 billion annually in card fees, highlighting the potential savings stablecoins could offer. Transactions with stablecoins are completed in minutes, a stark contrast to the days it can take for credit card transactions to settle.
Despite limited regulatory protections, the recent introduction of the U.S. GENIUS Act signifies progress in the regulatory landscape. As blockchain technology continues to gain traction, the cost and speed advantages of stablecoins could increasingly erode the market share of traditional payment networks like Visa and Mastercard.
Stablecoins Threaten Visa and Mastercard's Market Share
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