Amazon and Walmart consider launching stablecoins to cut card costs

• Companies target stablecoins to reduce card fees
• Stablecoins can speed up settlement and improve cash flow
• Industry awaits approval of the Genius Act in the US

US retail and travel giants such as Amazon, Walmart and Expedia are looking into creating their own stablecoins to bypass high credit card fees, second The Wall Street Journal reported. The strategy could represent billion-dollar savings, considering that merchants pay fees ranging from 1% to 3% per transaction with Visa or Mastercard.

In addition to reducing costs, stablecoins offer the advantage of almost instant settlements, eliminating the bank processing times of up to three business days that are common in traditional payments. This would allow companies to access funds more quickly and optimize their operations, especially in remittances to international suppliers.

In Amazon's case, discussions are reportedly in the early stages and involve the possible use of its own currency for online purchases. Other companies are reportedly considering integrating external stablecoins issued by a consortium led by a single issuer.

The retailers' initiative coincides with the moves by major US banks — such as JPMorgan, Bank of America, Citigroup and Wells Fargo — which are also evaluating a joint solution with stablecoins to face growing competition from digital platforms.

All of these plans hinge on the passage of the Genius Act, a bill that aims to establish a regulatory framework for stablecoins in the United States. The U.S. Senate is set to vote on the bill on June 17. Groups like the Merchants Payments Coalition have been pushing for its passage, saying the regulation could bring more competition to the payments industry and reduce bank fees.

Walmart even supports an amendment to the proposal that would increase competition among credit card issuers.