Major retailers including Walmart and Amazon are exploring the use, or issuance, of stablecoins, a move that could significantly disrupt the traditional payments ecosystem and save billions in card processing fees, according to The Wall Street Journal.
Companies such as Expedia and unnamed airlines have also been involved in early-stage discussions around issuing stablecoins, which are digital tokens pegged to fiat currencies like the US dollar and backed by cash-equivalent reserves.
The appeal? Faster settlement times, fewer intermediaries, and dramatically lower fees compared to the card networks dominated by Visa and Mastercard.
Retailers’ plans hinge in part on the passage of the Genius Act, proposed legislation that would establish a regulatory framework for stablecoins in the US. The bill has cleared an initial procedural stage but must still pass through both the Senate and the House.
Traditional payment methods often involve days-long settlement times and high fees, including interchange charges that cost US merchants an estimated tens of billions annually. Stablecoins offer near-instantaneous settlement and lower transaction costs, and could be particularly beneficial for cross-border payments and global supply chains.
If Walmart or Amazon were to issue their own stablecoins or adopt a consortium model with other merchants, it could sidestep the banking sector and intensify pressure on existing payment processors.
Retailers already hold vast customer data and operate at scale, making them potent competitors in the financial space, particularly as regulation of stablecoins remains relatively light.
Discussions at Amazon have included the possibility of issuing a proprietary coin for online purchases, though the project remains in early stages. Other options under consideration include adopting third-party stablecoins through merchant-led alliances.
Merchant trade groups, led by the Merchants Payments Coalition, are lobbying lawmakers to pass the Genius Act and introduce amendments that increase competition in the credit-card sector. Walmart, in particular, is pushing for more open financial infrastructure.
Walmart’s pursuit of stablecoins is the latest in a broader push into finance.
The retail giant previously sought a banking licence in the 2000s before withdrawing amid opposition, and has more recently launched a fintech subsidiary.
Its renewed efforts signal that it sees a real opportunity to embed financial services into its ecosystem.
Still, questions remain about the security, regulation, and consumer trust in stablecoins. But if the Genius Act passes, a wave of merchant-backed digital currencies could become a reality, threatening the dominance of both banks and credit card giants in the retail payments space.
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