BENTONVILLE, Ark.–Seeing an opportunity to potentially save millions of dollars in interchange fees, a number of giant retailers, including Walmart, Amazon and others, are exploring whether to issue their own stablecoins in the U.S..
In addition, airlines, Expedia Group and other companies in the travel industry are similarly exploring how they might potentially use stablecoins to handle payments and other transactions, according to the Wall Street Journal.
“A move to launch crypto-based payments by Walmart or Amazon that bypasses the traditional payments system would send shivers through the nation’s banks and card-network giants,” the Journal report stated. “With vast networks of customers and employees, troves of data and far lighter regulations, retail and technology companies have long been viewed as particular threats to banks, including regional and community lenders.”
Genius Act is Key
The decision by retailers, travel companies and other hinges on the state of the GENIUS Act, which is currently before the Senate and which the credit union trade groups support. The legislation is designed to establish a regulatory framework for stablecoins.
“Stablecoins could allow merchants to circumvent traditional payment rails, which cost them billions of dollars in fees each year, including the interchange fee they pay when customers make purchases using their cards,” the Journal reported. “Payments can take days to settle, delaying the time it takes for merchants to receive the proceeds from sales. Stablecoins offer the possibility for a quicker process. They could be of particular interest to merchants with suppliers who are located abroad.”
Card Alternatives Long Sought
The exploration of stablecoins is just the latest by many merchants that have sought alternatives to the card-based payments system, the Journal noted.
The Journal reported Amazon’s efforts are still in the early stages, according to a source, who said some of the talks have centered on having the company’s own coin for online purchases.
As the CU Daily has also reported, a consortium of banks has also been in discussions about the creation of a stablecoin.
