Visa, Mastercard stocks fall after stablecoin report

June 14, 2025 12:53 AM AEST | By Investing

Google News:

Visa, Mastercard stocks fall after stablecoin report — Image source: Kalkine Media

Recent News

AEG Celebrates the LGBTQIA + Community at the 2025 LA Pride Parade

What happens if AI can do everything better than humans?

Brookfield Infrastructure reportedly acquiring Hotwire for $7 billion

Nvidia GTC Paris is ’another bullish proof point’ long term - Morgan S...

Investing.com -- Visa (NYSE:V) stock fell 5.4%, Mastercard (NYSE:MA) dropped 4.6%, and American Express (NYSE:AXP) declined 2% after a Wall Street Journal report revealed major retailers are exploring stablecoin options to bypass traditional card payment fees. Other payment processors also suffered, with Capital One (NYSE:COF) down 3%, PayPal (NASDAQ:PYPL) falling 2.6%, and Block dropping 2.4%.

According to the report, retail giants including Walmart (NYSE:WMT) and Amazon.com (NASDAQ:AMZN) have recently explored issuing their own stablecoins in the U.S., a move that could potentially save them billions in transaction fees by shifting payment processing outside the traditional financial system. Expedia (NASDAQ:EXPE) Group and several major airlines have reportedly engaged in similar discussions.

Stablecoins, which maintain a one-to-one exchange ratio with government currencies and are backed by cash reserves or cash-like assets such as Treasury securities, are currently primarily used for cryptocurrency transactions. However, their potential application in everyday retail transactions poses a significant threat to established payment networks.

The retailers’ final decisions reportedly hinge on the Genius Act, pending legislation that would establish a regulatory framework for stablecoins. While the bill has cleared a procedural hurdle, it still requires approval from both the Senate and House.

The potential entry of major retailers into the payment processing space with their own digital currencies could significantly disrupt the business model of traditional payment networks, which generate substantial revenue from transaction fees charged to merchants.

This article first appeared in Investing.com

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (“Kalkine Media, we or us”), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary.
The content published on Kalkine Media also includes feeds sourced from third-party providers. Kalkine does not assert any ownership rights over the content provided by these third-party sources. The inclusion of such feeds on the Website is for informational purposes only. Kalkine does not guarantee the accuracy, completeness, or reliability of the content obtained from third-party feeds. Furthermore, Kalkine Media shall not be held liable for any errors, omissions, or inaccuracies in the content obtained from third-party feeds, nor for any damages or losses arising from the use of such content.
Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyrighted to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have made reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.
This disclaimer is subject to change without notice. Users are advised to review this disclaimer periodically for any updates or modifications.