Visa, Mastercard dominance faces new crypto threat, but both giants hit back
Stablecoin use surges in global payments, market to hit $2tr in 2 years from $253b now
Dubai: For decades, Visa and Mastercard have dominated global payments. But a new kind of challenger is closing in — and it’s not a flashy fintech or a rival bank. It’s stablecoins!
These blockchain-based digital currencies that are fast becoming the tool of choice for international payments, payroll, and commerce were once confined to crypto circles.
As transaction costs mount and global commerce goes digital, swipe fees — which cost retailers hundreds of billions globally — are in the spotlight. Even a small shift toward stablecoins could reshape the entire landscape.
“The stablecoin market could hit $2 trillion within years,” U.S. Treasury Secretary Scott Bessent said recently — a staggering jump from its current $253 billion valuation. And Visa and Mastercard aren’t defence-less.
How card giants are fighting back
Visa is piloting stablecoin settlement directly on its network and allowing banks to issue digital tokens. The goal? Stay relevant in a world where dollars may not always be paper.
Mastercard has teamed up with Paxos to issue its own fiat-backed stablecoin, USDG, while building new rails that support both crypto and traditional currencies.
Both companies are leveraging their biggest advantage: trust. Their global reach, fraud protection systems, and tokenization tech give them a powerful edge — even as younger rivals push blockchain-native solutions.
Why the shift matters
According to Coinbase, stablecoin transfers hit $27.6 trillion in 2024, surpassing the combined volume of Visa and Mastercard by over 7.6%. In April 2025 alone, monthly volumes topped $717 billion.
The reasons are simple:
Lower fees
Faster settlements
Easier cross-border transactions
Built-in inflation protection
Nearly 81% of crypto-aware small businesses now view stablecoins as a solution to their biggest pain points: high processing costs and slow payments.
Among Fortune 500 firms, on-chain finance is no longer fringe — it’s strategic. Executive interest in stablecoin use has nearly tripled over the past year. Some 9 in 10 say clear regulation is key to further adoption.
What’s next
Analysts at Citi predict stablecoins could reach $1.6 trillion by 2030 — and possibly $3.7 trillion in a best-case scenario, eclipsing the current crypto market cap.
This isn’t just a shift in payment rails — it’s a glimpse of a new financial system, one where blockchain-based dollars could one day replace swipes and slips.
For Visa and Mastercard, that future is already here — and they’re racing to stay ahead.
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