2 Real Reasons Amazon and Walmart Could Replace Your Bank
Written by
Sarah Li Cain
Edited by
Zuri Anderson
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Move over credit cards, because they may not be the most convenient way to pay for goods at major retailers — specifically Amazon and Walmart. These two retail giants may be launching their own stablecoins, or a kind of cryptocurrency that’s tied to a different asset that has a “stable” price, like gold.
If these companies do end up launching stablecoins, it could mean that you’ll be able to pay through their apps and website directly, skipping banks and credit cards altogether.
Why Amazon and Walmart Want To Launch Stablecoins
PaymentsJournal reports that it could save these companies billions in transaction fees. Called the interchange fee, this cost is what retailers pay to banks when a customer uses a credit or debit card as payment. The amount can range from 1.5% to 3.5% depending on the credit card type (think Visa and Mastercard) and the payment method.
Interchange fees are a major source of revenue for banks and can cost businesses big time. In 2024, U.S. merchants paid $187 billion in interchange fees, with around $111 billion of that being from credit card payments. This amount of credit card interchange fees merchants pay increased by 10% compared to 2023.
In fact, this type of expense is the highest after labor costs. It does make sense, considering the number of cashless payments consumers make probably went up since COVID-19.
An unfortunate consequence of rising interchange fees is that consumers will also need to open up their wallets more. Nilson Report data shows that these fees could increase prices overall, leading the average American family to pay an additional $1,200 per year, or $100 a month. If stores keep paying more in interchange fees, the more you could pay next time you step into a store.
If Amazon and Walmart issue their own stablecoins, they could bypass traditional credit and debit card networks, saving money and receiving payments instantly. Ideally, these savings would be passed onto consumers.
This shift could put both companies in more control over their relationships with their customers, and — you guessed it — probably find more ways to earn customer trust and loyalty, leading to more sales.
Getting Better Data To Sell to Customers
Stablecoins could give Amazon and Walmart more control over almost all areas of payments and even the data it can get from you. Some credit card processors, for example, may charge chargeback fees. This is a cost merchants pay when money gets refunded if a customer disputes a transaction.
Using stablecoins could give merchants more control when it comes to authorizing payments, which could lower or eliminate transaction disputes.
Having more control could mean that Amazon and Walmart can design their online checkout pages, potentially offering a smoother experience for customers. For example, Amazon and Walmart could overhaul the one-click payment method, helping them earn more sales. Other features like instant refunds could show customers that these companies are easy to work with, earning their loyalty.
Plus, having their own payments could mean being able to gather more data on you, including what you buy and how often. Using this personalized information could help them target you better and find ways to keep you buying, like loyalty programs that are actually enticing.
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