NEW YORK — In a move that could radically reshape the retail payments landscape, retail giants Walmart and Amazon are exploring the creation of their own U.S.-based stablecoins, potentially bypassing the traditional banking and credit card infrastructure that currently dominates retail transactions. The development, reported by The Wall Street Journal, signals growing interest among merchants in leveraging blockchain-based tools to cut costs and accelerate settlements.
According to sources familiar with the matter, both companies and other major players like Expedia and various airlines have recently held internal discussions about launching or integrating stablecoins into their payment ecosystems. While no final decisions have been made, such a shift could allow merchants to significantly reduce the billions they pay annually in credit card and interchange fees.
Stablecoins are a form of digital currency pegged to government-issued currencies like the U.S. dollar and backed by cash or equivalents. They offer nearly instantaneous settlement, making them appealing to retailers who typically wait days for card-based transactions to clear.
A key factor in whether these efforts move forward is the Genius Act, a federal bill designed to establish a regulatory framework for stablecoins. The legislation recently advanced in Congress but has yet to receive full approval. Retail trade groups, led by the Merchants Payments Coalition, have been lobbying for its passage, arguing that stablecoins could inject long-overdue competition into a payments ecosystem dominated by Visa and Mastercard.
Retailers are also weighing alternative strategies, including participation in stablecoin consortiums or partnerships with existing issuers. In parallel, big banks have reportedly considered forming their own consortium to respond to the shifting payments environment.
Amazon’s efforts are said to be in early development, with some discussions focused on issuing a proprietary token for use on its platforms. Walmart, meanwhile, is leveraging its growing fintech division to explore financial innovation, echoing its past attempts to enter the banking sector.
The market is already reacting to the potential disruption. Shares of Visa and Mastercard fell roughly 5% on Friday, with analysts warning of the “inevitable” push toward instant payments.
While concerns about security and regulation remain, the retail sector’s appetite for a faster, cheaper payment alternative appears to be growing.
