AI Companies Are Using Stablecoins to Bypass Visa and Mastercard Fees

The scale of stablecoin payments is now a direct competitive threat to traditional rails. Over the past year, between October 2024 and October 2025, stablecoins processed $9 trillion in adjusted payment activity, a massive 87% year-over-year increase. This growth is driven by businesses, not speculation, seeking faster, cheaper cross-border settlements that bypass the slow, multi-layered correspondent banking system.

Major fintechs are building dedicated stablecoin payment rails to capture this shift. Stripe, for instance, acquired Bridge for $1.1 billion in 2024 to bolster its stablecoin payment technology and has since introduced solutions for issuing pegged tokens. This enterprise adoption is accelerating, with clear regulatory progress like the EU's MiCA framework making stablecoins a more predictable tool for treasury and liquidity management.

The competitive pressure is intensifying as tech giants eye the space. Meta plans to enter the stablecoin market by year-end, potentially integrating services from a partner like Stripe. This move would open payment channels for its user base of over 3 billion people, directly challenging Visa and Mastercard's dominance in digital transactions.

The Fee Erosion Threat

The direct financial impact is quantifiable: stablecoins can reduce transaction costs by up to 40% compared to traditional payment networks. This fee erosion is a primary driver for enterprise adoption, as businesses seek to optimize their payment stacks. AI companies, in particular, are a key segment moving volume away from high-fee rails to leverage these savings.

Enterprise treasury and liquidity management is a major use case fueling this shift. Circle, the issuer of USDC, exemplifies this trend with its stablecoin volume more than doubling from $35.5 billion in Q3 2024 to $73.6 billion in Q4 2025. This growth reflects a strategic move by corporations to use stablecoins for efficient, low-cost settlement, directly competing with the services Visa and Mastercard provide.

The competitive pressure is now intensifying with tech giants entering the space. Meta's planned stablecoin launch by year-end would open payment channels for its vast user base, directly challenging the established fee structures of Visa and Mastercard. This move, potentially piloted with Stripe, signals a fundamental shift where the largest digital platforms bypass traditional payment rails entirely.

The Regulatory Wildcard

The path for stablecoins is being shaped by a powerful regulatory force. Clearer rules, like the EU's MiCA framework now entering full implementation, are the single biggest unlock for enterprise adoption. These regulations set requirements for reserves and transparency, transforming stablecoins from speculative assets into a predictable, practical tool for global treasury and liquidity management. This regulatory clarity is what's making the technology enterprise-ready for mainstream business use.

Yet the primary risk to this momentum is a potential crackdown. The market has already signaled its vulnerability, with stablecoin issuer Circle seeing its stock price drop 76% from its high since its IPO. This volatility reflects investor fears over regulatory uncertainty and the intense competition in the space, where Circle's $73.6 billion in USDC circulation still trails its larger rival Tether. The threat of new restrictions or enforcement actions remains a direct headwind to the growth that threatens traditional payment networks.

The dynamic could accelerate dramatically with Meta's planned entry. The tech giant aims to launch a dollar-pegged stablecoin by year-end, potentially piloting with Stripe. This move would inject over 3 billion users from Facebook, WhatsApp, and Instagram into the ecosystem, creating a massive new channel for low-cost, stablecoin-powered payments. For Visa and Mastercard, this isn't just another competitor-it's a potential bypass of their entire fee structure by the world's largest social platform.