Amazon Walmart Expedia Explore Stablecoins to Cut Card Fees by 3%

Amazon, Walmart, and Expedia are exploring the possibility of issuing their own stablecoins to mitigate the high costs associated with card payment processing. This move could potentially save these retailers billions of dollars annually in fees, including interchange fees, which are typically 1–3% per credit card transaction. These fees, when multiplied by the billions of transactions processed by large retailers, result in substantial annual expenses.

One of the primary advantages of using stablecoins is the near-instant settlement of transactions. Unlike traditional card payments, which can take 1 to 3 business days to settle, stablecoin transactions can be completed almost immediately. This rapid settlement allows merchants to access funds faster, improve cash flow, and manage global supply chains more efficiently, particularly when dealing with international suppliers.

Amazon's exploration into stablecoins is still in its early stages, with discussions centered around developing a coin specifically for online purchases. Companies are also considering the use of external stablecoins, possibly through a consortium of merchants led by a single stablecoin issuer. This approach could provide a more streamlined and cost-effective solution for payment processing.

Major US banks, including JPMorgan, Bank of America, Citigroup, and Wells Fargo, are also considering a joint stablecoin initiative. This move is aimed at competing with digital asset platforms that are rapidly gaining market share. The success of these initiatives, however, hinges on the passage of the Genius Act, which would establish a regulatory framework for stablecoins.

The proposed legislation has cleared a significant procedural hurdle but still requires approval from both the Senate and the House. The US Senate is scheduled to hold a final vote on the Genius Act on June 17 to define a regulatory framework for stablecoins. This framework is crucial for the future of both the retailers' and banks' stablecoin plans, as it will provide the necessary guidelines and regulations for their implementation.