How Stablecoins Could Transform In-Store Shopping in America

Stablecoins are rapidly gaining traction in the mainstream, signaling a potential paradigm shift in how businesses and consumers transact.

The impressive IPO of Circle, the entity behind the USDC stablecoin, and the recent enactment of the GENIUS Act, which provides a regulatory framework for stablecoins in the U.S., have significantly bolstered market confidence in cryptocurrencies tethered to the U.S. dollar. This regulatory clarity is crucial for fostering wider adoption and attracting institutional investment.

Now, small and medium-sized businesses (SMBs) across the U.S. are increasingly evaluating how stablecoin technology can address a persistent pain point: exorbitant payment processing fees. These fees, levied on credit card transactions and mobile payments, represent a substantial overhead for many businesses.

Data from the Nilson Report reveals that merchant processing fees reached a staggering $187.2 billion in 2024, underscoring the magnitude of the financial burden placed on businesses.

“If credit card transaction fees were an employee in my business, they would be by far the highest-paid employee,” observes Wade Preston, co-founder of Prevail Coffee Roasters. This sentiment encapsulates the financial strain that these fees impose, particularly on smaller businesses with tighter margins.

Prevail, operating four locations in Alabama and Georgia, is currently piloting a novel payment application that facilitates stablecoin transactions at the point of sale. This initiative aims to alleviate the burden of merchant processing fees while simultaneously enabling near-instantaneous payment settlement.

The strategic advantage offered by stablecoins lies in their ability to bypass traditional financial intermediaries, thereby reducing transaction costs and settlement times. This is achieved through the utilization of blockchain technology, which provides a secure and transparent platform for digital asset transfers.

“There’s tremendous potential in stablecoins. It should disrupt, to some extent, the traditional payment space we have today with credit and debit cards,” affirms Doug Kantor, general counsel for the National Association of Convenience Stores. “It has the promise of faster, cheaper, more efficient and frankly, more convenient transactions for consumers and businesses.”

The efficiency gains extend beyond cost savings. Faster settlement times can improve a business’s cash flow, enabling them to reinvest capital more quickly and capitalize on emerging opportunities. Furthermore, the transparency of blockchain technology can enhance security and reduce the risk of fraud.

However, challenges remain. The long-term success of stablecoin adoption hinges on widespread consumer acceptance, regulatory clarity, and the development of robust security protocols to safeguard against potential cyber threats. Interoperability between different stablecoin platforms and traditional financial systems is also crucial for seamless integration into the existing payment ecosystem. Despite these hurdles, the potential benefits of stablecoins are undeniable, and their continued evolution promises to reshape the landscape of commerce in the years to come.