Facts & Circumstances

Posted on July 10, 2025

Stablecoins, Anything but Stable for Visa & Mastercard

Visa and Mastercard are encountering a new challenger: stablecoins. The heat intensified after the U.S. Senate advanced the Genius Act, creating fertile ground for merchant-issued tokens. Stocks dipped as speculation rose.

These payment giants aren’t standing still. Visa has piloted USDC settlements, and Mastercard’s Fiserv deal enables FIUSD access for 150 million merchants.

That said, analysts from Wells Fargo, Barclays, Wolfe Research and others argue that stablecoins pose limited immediate risk to consumer payments. They emphasize consumer trust, fraud resolution, rewards programs and credit availability as protective buffers.

But there’s a caveat: cross-border and B2B payments remain a potential vulnerability. Stablecoins promise speed and reduced costs, especially in emerging markets where traditional rails lag.

Visa and Mastercard are responding by embedding stablecoin infrastructure into their systems—Visa through its Multi-Token Network and GA pilot, Mastercard via stablecoin-linked issuance cards. These steps reflect a strategic pivot: embrace the technology, rather than resist it.

Bottom line:

Stablecoins are moving from fringe to mainstream thanks to regulatory clarity and merchant interest. Visa and Mastercard aren’t being displaced—they’re integrating. In consumer payments, card networks still enjoy advantages—credit, trust and service layers. But in cross-border, landscape shifts could accelerate.

Recent coverage on stablecoins & payment giants:

Fiserv Leads S&P 500 Amid Stablecoin Tie-Up With Mastercard: https://www.investors.com/news/fiserv-mastercard-sp-500-stablecoin/

Watch These Visa Price Levels as Stablecoins Threaten to Bypass Card Fees: https://www.investopedia.com/watch-these-visa-price-levels-as-stablecoins-threaten-to-bypass-card-fees-11758144

Walmart and Amazon Explore Stablecoins. Visa Stock Falls but Analysts Don’t See Immediate Threat: https://www.barrons.com/articles/visa-stock-stablecoins-walmart-amazon-c57ead74