Visa and Mastercard Say Stablecoins Are Not a Threat

Visa and Mastercard have stated that stablecoin payments currently pose no threat to their dominance in the payments industry. Despite the global surge in crypto adoption in 2025, Visa’s annual transaction volume remains at $15 trillion, far larger than the stablecoin market.

Can Stablecoin Become a Threat to Visa and Mastercard?

According to Reuters, both companies explained that the majority of stablecoin activity is still limited to crypto trading or being used as a store of value, rather than for everyday payments. Around 90% of stablecoin volume is tied to crypto exchanges. 

In contrast, Visa and Mastercard offer predictability, wide acceptance, and strong fraud protection advantages that stablecoins have yet to match.

The company executives acknowledged that stablecoins are powered by advanced technology. However, they also emphasized that stablecoins lack key elements such as scale, reliability, fraud safeguards, and consumer trust factors that are well established in traditional card networks.

Visa and Mastercard Invest in Stablecoin

Both companies are actively investing in stablecoin integration and infrastructure to bridge the gap between traditional finance and the crypto world. With the introduction of clearer regulatory frameworks like the GENIUS Act, stablecoins are gradually gaining more acceptance.

Stablecoins are particularly growing in countries with unstable fiat currencies or high inflation, where they serve as an alternative store of value and a cross-border remittance tool. However, in developed economies, their adoption is slower due to regulatory uncertainties and limited consumer protection areas, where card networks hold a strong edge.

Final Thought 

While many merchants in the U.S. are drawn to stablecoins for their lower fees, faster settlements, and global reach, Visa and Mastercard still dominate the payment ecosystem. Most stablecoins remain confined to the crypto space, whereas Visa and Mastercard are deeply embedded in the global payment infrastructure.

FAQs

Why aren’t stablecoins replacing credit cards yet?

Stablecoins lack scale, reliability, fraud safeguards, and consumer trust that Visa/Mastercard offer. Most usage (90%) is still limited to crypto exchanges.

Will merchants switch from cards to stablecoins?

Some prefer stablecoins’ lower fees/faster settlements, but Visa/Mastercard’s global infrastructure and trust maintain dominance in payments.

Do stablecoins threaten Visa and Mastercard?

No. Most stablecoin use is for crypto trading, not everyday payments, keeping card networks dominant.

Why is stablecoin adoption slow in developed economies?

Regulatory uncertainty and weaker consumer protection slow stablecoin growth in developed markets.