Key takeout
-
Stablecoins reduce payment times, cross-border costs, and enable programmable rewards. This surpasses traditional credit card systems.
-
American merchants pay card fees of more than $100 billion a year. In comparison, Stablecoins offers much cheaper and faster payments.
-
Ripple’s RLUSD, Gemini’s XRP cards, and Moca’s Air Shop Show Stablecoins will move into mainstream commerce.
-
With major players exploring recruitment, Stubcoin is positioned to be the centre of the US payment system.
Stablecoins first appeared in 2014, redefining traditional banks to provide price stability in the volatile cryptocurrency market. They separated the core functions of money preservation and transfer. This allows FinTech to build programmable services in the global digital currency system.
Traditionally, companies accepted card payments, but the remaining capabilities of holding deposits and providing additional services and tools were in the bank’s domain.
Stablecoins replaces this mostly with ecosystems, most of which are published centrally, but operates on distributed networks rather than centralized entities. Additionally, it will introduce a flexible reward system that reduces cross-border transfer times, reduces costs, stabilizes the value of the fund, and outperforms credit cards.
Whenever a credit card is used in the US, the bank and payment network usually acquires a small portion of the 1.5%-3.5% transaction. This will significantly reduce merchant profits and increase consumer prices. This is beginning to change thanks to Stablecoins.
This article explains the costs associated with credit cards, how Stablecoins compares to credit cards, the industry’s use cases for Stablecoin, and how Stablecoin is hampering the credit card industry.
Costs to pay to a credit card
Credit cards are widely used for payments not only in the US but also around the world. However, this convenience is expensive. Each transaction includes hidden fees, including exchange fees paid by merchants to the bank, network fees collected by Visa and MasterCard, and other processing costs. These fees are typically between 1.5% and 3.5%, and are directly reduced to merchant profits.
Companies such as airlines, retailers, and small stores often raise prices to cover these costs, which ultimately affect consumers. The payment system prefers card networks and has little control over merchants. Meanwhile, consumers will pay indirectly for the network’s profits.
Stablecoins is pinned to Fiat currencies like the US dollar, providing solutions with faster, cheaper and clearer transactions. By avoiding card networks and lowering fees, Stablecoins help businesses save money and provide better value to consumers.
Did you know? Unlike rigid cashback and points systems, Stablecoins enables programmable loyalty programs. Merchants can customize inter-brand rewards, trade and store customers, guarantee tokens, and maintain value to reshape how loyalty is gained.
What is Stablecoins?
Stablecoins are a type of cryptocurrency created to retain stable value by pinning them to stable assets, usually US dollars. Unlike unpredictable cryptocurrencies such as Bitcoin (BTC) and Ether (ETH), Stablecoins offer stability and are suitable for daily transactions.
Their value is usually supported by cash reserves, short-term US Treasury securities or similar assets. It is designed to keep one token for about $1. They combine the speed and efficiency of blockchain technology with the reliability of traditional currencies.
The USDC (USDC) issued by Circle is a Stablecoin that operates under the US Money-Services-Business Registration and is subject to dollars that publish regular third-party certifications. In December 2024, Ripple launched Ripple USD (RLUSD), which has received regulatory approval from the New York Department of Financial Services before making the coin available on global exchanges. These US dollar-related stubcoins are transforming payment systems, offering businesses and consumers a cost-effective, fast, global alternative to traditional payment methods.
Stablecoins vs. Credit Cards: For a better payment system
Stablecoins presents an alternative to credit cards by addressing two of the biggest issues with US payments. High prices and slow settlement.
Credit card payments may feel instantly, but merchants usually wait 1-3 business days to receive the funds. During that delay, they also pay 1.5%-3.5% fees per transaction, cut to margins and often passed to consumers. Stablecoins usually settle into blockchain networks at the cost of minutes within seconds to minutes, offering faster and cheaper options for both merchants and customers.
It’s no wonder Stablecoins is attracting attention from merchants, airlines and large retailers keen to reduce their reliance on Visa and MasterCard’s retention networks. By adopting Stablecoins, they can regain lost revenue, protect tight margins, and maintain a robust loyalty program.
The project is currently using a blockchain-driven platform to promote Stablecoin-based reward points. It helps to maintain real-world values and provides businesses with concrete economic benefits while still keeping loyalty schemes attractive to customers.
Customers can really own reward points. This means you can save points, move them elsewhere and spend time outside the platform you earned.
Below is a table showing how Stablecoins compares to credit cards.
Stubcoin use cases in the credit card industry
Competition between Stablecoins and credit cards is not just about reducing costs or quick trading. It also reflects how large companies are restructuring their end customers and company payment systems.
From cryptocurrency-backed credit cards to Stubcoinbase’s loyalty program, the industry is developing creative hybrid solutions that combine traditional payment approaches.
Here we present two case studies to gain insight into how companies are improving their payment systems.
Gemini and Ripple’s strategic moves
On August 25th, 2025, Gemini jointly introduced the XRP credit card with Ripple. This card offers up to 4% cashback (XRP) for gas, electric vehicle charging, and ride-share purchases (with monthly caps). 3% diet. 2% for groceries. 1% on all other purchases. Rewards are credited instantly in crypto, and there are no annual or foreign transaction fees on the card.
Gemini also adopted Ripple USD (RLUSD) as the base currency for all US spot trading pairs, simplifying currency conversions. To further support RLUSD, Ripple acquired Rail, a payment platform, for $200 million, adding tools to its ecosystem for cross-border payments, virtual accounts and automation.
Did you know? In the second quarter of 2025, average The interest rate for credit cards in the US was 21.16%. For accounts carrying balances, the rate was even higher, with an average of 22.25%.
Retail and e-commerce innovation
The AirShop, which is scheduled to launch in September 2025, is looking to rebuild its loyalty program through Stablecoin-powered commercial. The platform employs air kits for secure identity and layered membership verification, offering customized rewards. Its core includes stable points (Air SP), USD support tokens linked to Stablecoins, which maintain its value unlike traditional loyalty points. These stable points can be used by over 2 million merchants via Bookit.com, spanning travel, retail, dining and luxurious experiences.
Unlike traditional loyalty programs with restrictive usage and reduced value, Air Shop ensures flexibility and interoperability, allowing users to carry rewards across their brands. Merchants gain transparent and cost-effective ways to connect with their customers, while consumers enjoy trust, flexibility and true economic value.
A 100 Billion Possibility: How Stablecoins Disrupt the Credit Card Industry
In 2024, credit cards are the most popular payment method among US consumers, accounting for 35% of all transactions. Total purchase volume reached $551 trillion in 56.2 billion transactions made on Visa and MasterCard products.
Stablecoins challenge this expensive system through blockchain technology by providing near-cost transactions, instant settlements and flexible rewards. If Stablecoins wins 10% to 15% of the trading market, they can save merchants and consumers on savings.
The continued adoption of stubcoinbase payments and loyalty programs by retailers, airlines and e-commerce companies could increase pressure on traditional credit card networks. Such a shift not only restructures the payment economy, but also encourages the broader use of blockchain technology, moving stable from niche solutions to central elements of US financial infrastructure.
Did you know? Gemini’s XRP credit card was released in 2025 and is a hybrid model that offers the convenience of credit cards with Crypto Rewards. This shows how FinTech is fusing old and new systems, relaxing it to blockchain-based payments without forcing consumers to abandon plastic.
Stablecoins are becoming a core component of the financial system
The competition between Stablecoins and credit cards exceeds payment methods. It determines who controls the flow of money in the digital age. With improved regulatory clarity, institutional support and consumer reliability, Stablecoins offers a much more attractive, faster, cheaper and programmable transaction.
Ripple’s initiatives such as the RLUSD and Gemini offering show how cryptocurrency companies are embedded in mainstream finance. At the same time, major retailers like Amazon and Walmart are exploring their own stubcoins to reduce fees and reform their loyalty programs. If these initiatives are successful, they can transform the economics of payments and redistribute billions of dollars in costs and profits across ecosystems.
While credit cards remain deeply rooted, blockchain-powered stubcoins could become a core component of US commercial and could reshape incentives, reduce costs, and redefine customer engagement in a $100 billion payment environment.
This article does not include investment advice or recommendations. All investment and trading movements include risk and readers must do their own research when making decisions.