The two payment giants #Visa and Mastercard are facing a potential threat that could cost them billions of USD in revenue each year. The main cause? The strong rise of stablecoins in the payment sector, especially in online shopping.
The threat from e-commerce and the rise of stablecoins
In the first two months of 2025, American consumers spent an average of $555.5 billion per month on shopping activities. Notably, nearly 19% of that came from e-commerce – a huge figure, highlighting the importance of the online shopping channel.
Currently, Visa and #Mastercard are greatly benefiting from the transaction fees per billion USD. However, the landscape could change rapidly as payment platforms like PayPal, Venmo, and Stripe become increasingly popular, and more importantly, as merchants begin to accept payments in stablecoins.
Why are stablecoins a real threat? Simply because they provide clear benefits for retailers. The transaction fees for stablecoins are often significantly lower than the fees that Visa and Mastercard charge for each credit/debit card transaction. This is why merchants may be willing to offer discounts to customers when they pay with stablecoins to encourage usage and save costs for themselves.
The future of payments: A fierce battle awaits
If consumers shift to using stablecoins for payments, especially in the e-commerce sector where hundreds of billions of USD are transacted each month, then Visa and Mastercard will face a massive revenue decline. This is not just a hypothetical scenario but a potential trend as blockchain technology and cryptocurrencies become increasingly widely accepted.
The question is, can these two giants adapt in time and change their business models to cope with the impending wave of stablecoins? The battle for payment market share is sure to become fiercer than ever.