Walmart and Amazon are exploring the idea of launching their own stablecoins—a move that could significantly alter the financial services landscape and chip away at the dominance of banks and card networks like Visa and Mastercard in this field. If adopted at scale, these corporate-backed digital currencies would allow merchants to process payments faster, avoid costly interchange fees, and shift transactions outside the traditional financial system.
The potential disruption is relevant. US retailers currently pay over US$ 100 billion annually in credit card fees, a figure that has doubled in the past decade, according to the National Retail Federation. By using stablecoins—digital tokens typically backed by cash or equivalent assets like Treasurys—companies could drastically cut those costs and gain quicker access to proceeds from sales, especially for international supply chains.
Amazon’s efforts are still in exploratory phases, with discussions revolving around whether to develop a proprietary coin or partner in a stablecoin consortium. Walmart, meanwhile, is pushing harder on the legislative front, lobbying for stablecoin-friendly regulation and broader competition in the credit card space. Both companies see stablecoins as a path to deeper control over customer relationships and financial flows.
Regulation and market reaction
The legislative resource is the Genius Act, a bill that proposes a regulatory framework for stablecoins in the US. It recently passed a procedural hurdle but still needs full approval by Congress. Industry groups like the Merchants Payments Coalition are backing it, arguing it would inject competition into a market long dominated by card giants. The urgency is reflected on Wall Street: shares of Visa and Mastercard fell about 5% after news of the retail stablecoin developments were publicized.
Financial institutions are taking note. In an announcement, TD Cowen warned clients that the “push to instant payments is inevitable” and poses a structural threat to the current payments ecosystem. Megabanks are also weighing a stablecoin consortium, signalling that the fight for the future of payments is no longer just between fintech and Big Tech.
Despite the enthusiasm, hurdles remain. Questions about the cybersecurity of stablecoins, systemic risk, and consumer protection loom large. Regulatory clarity will be essential to move from pilot discussions to implementation. Still, as McKinsey pointed out in its 2023 Global Payments Report, stablecoins have moved from “hype to utility” as institutions increasingly view them as tools for real-world financial infrastructure rather than speculative assets.
