Hua Er Jie Jian Wen·2025-11-24 02:52Core Insights - Visa and Mastercard are accelerating their embrace of cryptocurrency payments, betting on the growth potential of stablecoins in developing countries while countering competitive threats from merchants bypassing their networks [1] - The push for expansion in cryptocurrency payments comes after a warning in spring when Amazon and Walmart were reported to be exploring stablecoin launches, leading to a drop in Visa and Mastercard's stock prices [1] - Recent legislation in Washington has provided legitimacy to stablecoins, promoting their growth in traditional finance [1] Group 1: Cryptocurrency Payment Expansion - Visa's prepaid card business based on stablecoins is rapidly growing, particularly in emerging markets like Latin America, where consumers and businesses use stablecoins to access US dollars [2] - As of September 30, the spending associated with Visa cards linked to stablecoins has tripled year-over-year, with Visa operating over 130 stablecoin-linked card issuance projects in more than 40 countries [2] - Mastercard has over 100 crypto card projects globally, with significant contributions from startups like Rain and Stripe's Bridge [2] Group 2: Challenges to Traditional Banking - The stablecoin business poses a nuanced challenge for Visa and Mastercard as it may alienate traditional banking clients who rely on debit and credit cards [2] - Both companies do not issue their own stablecoins but assist banks in launching them, which could threaten banks' roles in stablecoin transactions, leading to lower revenue compared to traditional debit card payments [3] - Merchants prefer stablecoin transactions due to faster fund availability, which could disrupt traditional settlement processes [3] Group 3: Credit Card Market Potential - Direct payments between businesses and individuals represent the largest type of stablecoin transactions, followed by card payments, indicating that card usage is being driven by Visa and Mastercard's involvement [4] - Stablecoin-linked credit cards are still in the early stages, with limited adoption compared to traditional credit cards, which remain core to Mastercard and Visa's business [4]