This article explores how stablecoins are revolutionizing the payment industry by reducing transaction costs, enhancing competitiveness, and addressing pain points in traditional payment systems. Key advantages include lower fees, faster processing speeds, and reduced intermediary risks. Through real-world examples, we demonstrate how stablecoins can significantly boost profitability across businesses and advocate for broader adoption.
The Current Payment Landscape
Today's payment ecosystem is dominated by gatekeepers charging exorbitant fees, which erode profitability for businesses while justifying these costs under the guise of ubiquity and convenience. These practices stifle competition and limit innovation.
Stablecoins offer a better alternative:
- Near-zero transaction costs
- Competitive payment providers
- Global accessibility
With transaction fees reduced to virtually nothing, stablecoins eliminate friction imposed by legacy systems. Adoption will begin with businesses most disadvantaged by current payment options, ultimately disrupting the entire industry.
Key Statistics:
- 28.5 million unique stablecoin users conducted 600+ million transactions last month.
- Stablecoins are already the cheapest way to send $1 globally, operating in nearly every country.
- They provide a secure, low-cost, inflation-resistant method for savings and spending.
Unlike traditional payment channels, stablecoins are:
✅ Permissionless
✅ Programmable
✅ Scalable
✅ Integratable
Anyone can build platforms atop stablecoin payment rails, accelerating innovation.
Core Players in Payments
| Role | Description |
|---|---|
| Payment Channels | Networks and protocols processing transactions (e.g., Visa, SWIFT) |
| Payment Processors | Entities executing transactions (e.g., Stripe, Square) |
| Payment Service Providers | Platforms offering payment access to end-users (e.g., PayPal, Venmo) |
| Payment Solutions | Products like point-of-sale systems or invoicing tools |
| Payment Platforms | Integrated suites of solutions across processors and channels |
Why Stablecoins Disrupt Payments
Stablecoins thrive where traditional systems fail:
1. Remittances
- Cost: $0.01** (stablecoin) vs. **$12.13 (traditional) for a $200 transfer to Colombia.
- Speed: Real-time settlement vs. days via banks.
2. International B2B Payments
- Eliminates 4+ intermediaries (local banks, FX, correspondent banks), reducing fees and delays.
3. Microtransactions
- Coffee shops lose 15% of a $2 sale to card fees. Stablecoins slash this to <1%.
Profitability Boost from Stablecoins
Adoption could dramatically improve margins:
| Company | Annual Revenue | Current Card Fees | Profit Increase |
|---|---|---|---|
| Walmart | $648B | ~$10B | +60% |
| Chipotle | $9.8B | $148M | +12% |
| Kroger | $148B | Fees ≈ Net Income | Potential 2x profit |
Example: Stripe now charges 1.5% for stablecoin payments (vs. 2.9% for cards), signaling a 30% cost reduction.
Pathways to Mainstream Adoption
1. Backend Integration via Stablecoin Orchestration
Payment processors like Stripe are embedding stablecoins into infrastructure, enabling businesses to benefit without disrupting user experience.
2. Improved Onboarding & Shared Incentives
- Apps like Venmo, PayPal, and Revolut now support stablecoins.
- Businesses earn revenue shares from stablecoin flows (a model previously exclusive to banks).
3. Regulatory Clarity
- EU’s MiCA regulation sets rules for stablecoin issuers.
- U.S. bipartisan efforts may soon establish a federal framework.
The Future: A Frictionless Payment World
Stablecoins unlock:
- Free, instant, global payments
- New business models (e.g., programmable money, DeFi integrations)
- Democratized financial access
As adoption grows, expect:
- More point-of-sale stablecoin acceptance
- Declining processing fees (currently at 1.5%, likely to drop further)
- Explosion of innovative use cases
"Stablecoins are the room-temperature superconductors of financial services."
—Patrick Collison, CEO of Stripe
FAQ
Q: Are stablecoins secure?
A: Yes, major stablecoins like USDC and USDT are backed by high-quality reserves and audited regularly.
Q: How do businesses start accepting stablecoins?
A: Payment processors (e.g., Stripe, Square) offer plugins for easy integration.
Q: Will stablecoins replace banks?
A: Unlikely—they’ll complement traditional systems, offering cheaper alternatives for specific use cases.
👉 Explore how leading businesses leverage stablecoins
👉 Start accepting stablecoin payments today
Acknowledgments
Special thanks to Tim Sullivan, Eddy Lazzarin, and the a16z Crypto team for insights.
About the Author:
Sam Broner is a partner at a16z Crypto, formerly at Microsoft and MIT Sloan. Follow him on X @SamBroner.