Walmart Amazon Explore Stablecoins to Cut Merchant Fees

Walmart and Amazon are exploring the possibility of issuing their own stablecoins in the United States. These digital tokens, which would be pegged to the U.S. dollar or other government-backed currencies, could significantly reduce merchant fees and expedite payment settlements. This move has the potential to disrupt the dominance of traditional financial institutions and shift consumer transactions away from banks, intensifying pressure on card networks like Visa and Mastercard.

The adoption of stablecoins by these retail giants could eliminate costly card processing fees and reduce transaction times, particularly for cross-border payments. This development is contingent on the passage of the Genius Act, a proposed regulatory framework for stablecoins that recently passed a key procedural step in Congress. If enacted, this legislation could pave the way for large companies to adopt or issue stablecoins as an alternative to existing payment rails.

Both companies are currently in the early stages of exploration, considering private coins or partnerships with third-party stablecoin providers. Walmart, which has a long-standing interest in financial services, is also advocating for amendments that would increase competition in the credit-card industry. This move underscores the growing interest among major retailers in leveraging digital currencies to streamline transactions and reduce costs.