Amazon and Walmart to Launch Stablecoins to Save on Transaction Fees and Gain Control Over Payments

Amazon and Walmart are reportedly planning to launch their own stablecoins, a type of cryptocurrency tied to a stable asset, to potentially replace banks and credit cards. This move could save the companies billions in transaction fees and put them in more control over customer relationships and data. By launching their own stablecoins, Amazon and Walmart could bypass traditional credit and debit card networks, receiving payments instantly and passing on the savings to consumers. This shift could lead to more control over payments and data, as well as increased customer trust and loyalty.

The landmark GENIUS Act, which passed Congress this week, has opened the door for more businesses to issue their own stablecoins. This development is significant, as it could potentially transform the retail payments landscape, with giants like Amazon and Walmart reportedly considering their own stablecoin initiatives [1].

Stablecoins are a type of cryptocurrency that is pegged to a stable asset, such as the U.S. dollar. They offer the advantages of blockchain technology, including instant settlement, 24/7 operation, and reduced transaction costs, while maintaining the stability of traditional currency. By issuing their own stablecoins, Amazon and Walmart could bypass traditional credit and debit card networks, potentially saving billions in transaction fees [1].

The motivation behind this move is clear. Retailers currently lose an estimated 2% to 3% of every transaction to credit card processing fees. For companies with billions in sales, eliminating even a portion of this margin drag could unlock tens of millions in savings. Stablecoins offer a potential alternative that reduces frictional costs, accelerates settlement times, and gives merchants more control over payment rails [1].

For consumers, the impact could be significant as well. According to Kevin Lehtiniitty, CEO of stablecoin network Borderless.xyz, a stablecoin issued by a big retailer would feel similar to using a gift card. The benefit for shoppers could ultimately be lower prices if companies pass on their savings in transaction fees to their customers [1].

However, there are potential downsides to consider. Stablecoins would add another layer to the payment process, requiring customers to buy the stablecoins first before using them to transact. Additionally, the management of stablecoin reserves is crucial. If these reserves are mismanaged or the issuing entity runs into financial trouble, the stablecoins could lose their value [1].

The stablecoin market growth is also being driven by other major developments. Circle’s public debut and the Senate’s passage of the GENIUS Act have unlocked billions in pent-up demand for stablecoin issuers and signaled strong market confidence in the future of digital dollars [2]. Financial giants and retail behemoths are rushing to develop their own stablecoin solutions, with companies like JPMorgan, Visa, and Mastercard leading the charge [2].

In conclusion, the potential launch of stablecoins by Amazon and Walmart could significantly impact the retail payments landscape. While there are potential benefits and risks, the future of stablecoins in retail appears promising, given the recent regulatory clarity and market interest.

References:
[1] https://www.businessinsider.com/genius-act-passed-two-retailers-are-considering-stablecoins-wmt-amzn-2025-7
[2] https://www.whatjobs.com/news/market-growth-transforms-financial-landscape-as-major-corporations-join-the-race/