Major Credit Card Companies Dismiss Stablecoin Challenge, Yet Competition Shows Signs of Escalation
In the rapidly evolving world of digital payments, stablecoins are making their mark, albeit modestly compared to traditional payment networks like Visa and Mastercard.
As of mid-2025, stablecoins facilitate approximately $30 billion in daily transactions, representing less than 1% of global money flows. Their total market capitalization stands around $255 billion, primarily US-dollar pegged[1][3]. In contrast, traditional payment networks like Visa and Mastercard process trillions in transactions daily, with Visa alone moving over $10 trillion annually[4].
However, stablecoins' overall transaction volume across all uses—mostly trading and crypto-related—reached approximately $5.7 trillion in 2024, with 2025 figures projected higher. This includes many transactions not crossing borders or serving traditional payments[4].
In the context of cross-border payments, stablecoins occupy a smaller niche, with estimates placing the market at about $15-37 billion annually[4]. This pales in comparison to traditional networks’ dominant share in global cross-border retail and business payments, which amount to trillions annually.
Despite their relatively small volume, stablecoins have shown significant growth and promise, particularly in cross-border and digital asset contexts. Notable players like Circle have started to chip away at the market share of Visa and Mastercard[2].
In a bid to stay competitive, Visa has been expanding its support for stablecoins. The company now backs Circle's euro-backed stablecoin, EURC, and has integrated Stellar and Avalanche in addition to Ethereum and Solana[5]. Visa has also partnered with Paxos to support two new USD-backed stablecoins, USDG and PYUSD[6].
The addition of these stablecoins has seen Visa's stablecoin transaction volume surge. In Q1 2025, stablecoin transaction volume exceeded Visa's total transaction volume, with Visa's stablecoin transaction volume surpassing $6 trillion, nearly doubling its previous volume[7].
Mastercard, too, has been feeling the pressure to adapt. The company's transaction fees have averaged to 7.3 cents per transaction, down from nearly 8 cents the year before[8].
However, the road ahead for stablecoins is not without challenges. They face the hurdle of low transaction fees, with Visa earning 6.6 cents per transaction in processing fees last quarter, down from nearly 9 cents a decade ago[9].
As the landscape of digital payments continues to evolve, it will be interesting to see how traditional payment networks like Visa and Mastercard navigate the rise of stablecoins and maintain their dominance in the market.
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- In the realm of cross-border business payments, traditional networks like Visa and Mastercard continue to dominate, with annual figures exceeding trillions, whilst stablecoins hold a smaller niche, estimating around $15-37 billion annually.
- Notwithstanding their current small volume, stablecoins, such as Circle's EURC, are demonstrating growth and potential, potentially challenging the market dominance of Visa and Mastercard and contributing significantly to digital asset and cross-border payment contexts, with their 2025 figures anticipated to grow further.
