Some of the world’s largest retailers are exploring the use or issuance of stablecoins, aiming to shift a significant portion of their cash and card transactions outside the traditional financial system and reduce the billions they currently pay in processing fees.

According to The Wall Street Journal, Walmart, Amazon, and other multinational firms have recently examined the potential to issue their own stablecoins in the US.

Expedia Group, along with major airlines and other large companies, has also reportedly discussed launching stablecoins.

A move by Walmart or Amazon to enable crypto-based payments that bypass banks and card networks would pose a direct threat to traditional financial institutions and payment giants such as Visa and Mastercard.

These companies rely heavily on fees from merchants, particularly through interchange charges and delayed settlement processes.

Stablecoins, which are digital tokens pegged to currencies such as the US dollar and backed by cash or near-cash assets like Treasury bills, are increasingly viewed as a cheaper and faster alternative to conventional payments, especially for businesses with international supply chains.

Retailers’ decisions may ultimately depend on the passage of the Genius Act, a bill designed to establish a regulatory framework for stablecoins.

The bill has passed a procedural stage but still requires approval from both the Senate and the House.

Retailers and their trade groups, led by the Merchants Payments Coalition, have been lobbying lawmakers to support the bill, arguing that it would introduce much-needed competition in a payments market dominated by Visa and Mastercard.

Following these developments, shares of both card companies fell around 5% on June 13, with Visa becoming the second-worst performer on the Dow Jones Industrial Average.

Some merchants are also considering adopting existing stablecoins through a consortium structure, even if they decide not to issue their own.

Similarly, major US banks have discussed forming their own stablecoin consortiums.

Walmart has pushed for an additional amendment to the Genius Act that would bring more competition to the credit card market.

The retailer has long sought to expand into financial services and has recently advanced these efforts through its fintech division.

In the early 2000s, Walmart withdrew a bid for a banking charter after facing strong opposition.

Featured image credit: Edited by Fintech News America, based on image by Marques Thomas on Unsplash