Stablecoins Threaten to Impact Credit Card Arena as Companies Aim to Harness Their Potential

Conversations about the potential for businesses and consumers to carry out daily transactions through cryptocurrency payments often end with questions that don’t have easy answers. 

For example, many cryptocurrencies fluctuate wildly in value throughout any given day. So how can a retailer set the price of an item in a cryptocurrency that may be worth significantly more, or less, by the time a customer removes a product from the shelf and proceeds toward the register to pay for it?

Stablecoins may offer a solution to that issue because — as their name suggests — they provide a stable value through their connection to a more established asset. Companies operating in the payments ecosystem have recently moved to incorporate stablecoin tools into their product offerings.

Fintech company Circle issues USDC, one of the largest regulated stablecoins in the world. On Monday, the company announced its Circle Payments Network (CPN), which will allow for cross-border payments that use regulated stablecoins to settle in real time.

International payments made with regulated stablecoins can settle in real time with the Circle Payments Network.

“Since our founding, Circle’s vision has been to make moving money as simple and efficient as sending an email,” Jeremy Allaire, Circle’s CEO, Co-Founder, and Chairman, said in a press release. “CPN is a significant step in making that vision a reality for businesses worldwide.” 

Circle may not yet be a household name in many parts of the world, but more prominent players in the credit card industry have waded into the stablecoin waters in recent weeks. Crypto company Bleap announced its partnership with Mastercard on April 16.

Under the arrangement, Bleap will offer a debit card that cardholders can use to transact in stablecoins at more than 150 million locations that accept Mastercard around the world. 

Joao Alves, Bleap’s Co-Founder, said in a press release announcing the deal that Bleap’s technology seamlessly integrates blockchain assets with the global payment rails Mastercard manages. 

“This innovation will allow millions of self-custodial wallets to connect effortlessly with traditional financial systems, without requiring further integrations,” Alves said. 

Credit card industry insiders should know that stablecoins can bring both positive and negative elements to their business practices. Merchants frustrated by the costs of accepting card transactions will be pleased to learn that stablecoin payments can avoid interchange fees.

Stablecoin purchases may also bypass foreign transaction fees, allowing international transactions to settle faster and less expensively than more traditional forms of payment.

Issuers wanting to take part in the stablecoin movement can issue branded stablecoins and digital wallets that customers can use to manage, store, and transact with cryptocurrency.

Consumers may be hesitant to transact in stablecoins initially, fearing the fraud risks of a new payment vehicle. But businesses can be more open to new technologies and emerging payment tools.

A recent report from Payments Dive reveals that Mastercard and PayPal are considering how stablecoins can be a useful solution in the business-to-business payments space.

We’ll be keeping a close eye on cryptocurrency developments and their potential to impact the credit card industry in 2025. Scott Abrahams, Executive Vice President, Global Partnerships at Mastercard, summed up the important role that credit card companies can play in emerging currencies in comments included in the Bleap press release.

“Digital currencies are a critical part of the global economy, so helping people and businesses embrace them by simplifying how they can be spent is essential,” Abrahams said.