$60B Slide in Visa, Mastercard Seen as Buying Opportunity Amid Stablecoin Jitters

Shares of Visa Inc. and Mastercard Inc. took a sharp hit on Friday, plunging over 7.1% and 6.2% respectively, following reports that several multinational corporations are considering bypassing traditional credit card rails via stablecoins. According to the Wall Street Journal, large merchants such as Walmart Inc. and Amazon.com Inc., along with airline operators and Expedia Group Inc., are exploring the issuance of their own U.S.-based stablecoins as a cost-saving alternative to legacy payment networks.

The sell-off wiped out over $60 billion in combined market value from Visa and Mastercard, triggering broader weakness across the payments ecosystem. American Express Co., PayPal Holdings Inc., and Capital One Financial Corp. also saw their shares slide during intraday trading as investors digested the potential long-term implications of stablecoin integration into retail and travel payments.

Analysts See Market Overreaction, Recommend Accumulating on Weakness

Despite the steep decline in share prices, leading Wall Street analysts remain bullish on the long-term fundamentals of Visa and Mastercard, characterizing the slump as a tactical entry point for investors. William Blair’s Andrew Jeffrey reiterated “outperform” ratings on both payment giants, urging investors to “accumulate shares on weakness”, citing structural barriers to mainstream stablecoin usage.

Jeffrey emphasized that stablecoins are not yet suited for widespread business-to-consumer (B2C) commerce, adding that entrenched consumer habits favoring debit and credit cards will likely remain dominant for the foreseeable future. A lack of standardized protocols in the stablecoin ecosystem also poses challenges to scaling up merchant-led alternatives.

Highlights:

• Analysts say current sell-off is overdone, creating buying opportunities.

• Stablecoins still lack B2C readiness, standardization, and regulatory clarity.

• Consumer payment behaviors favor existing card infrastructure.

Visa, Mastercard Proactively Building Stablecoin Infrastructure

While stablecoin ambitions by retailers and tech companies raise concerns over future payment volumes and interchange margins, analysts argue that Visa and Mastercard are not vulnerable bystanders, but rather active participants in blockchain-based innovation.

Bloomberg Intelligence’s Diksha Gera stated that the reaction in the market reflects premature fears, and that both firms have already begun integrating stablecoin processing capabilities. This proactive stance, coupled with regulatory and trust-related hurdles in crypto adoption, could give traditional networks time to evolve and adapt profitably.

BMO Capital Markets’ Rufus Hone reinforced that even in a scenario where stablecoins gain wider traction, Visa and Mastercard remain well-positioned to monetize such transactions. Both companies have the infrastructure and partnerships in place to process payments via stablecoin rails, suggesting that they can benefit from — not just survive — the transition.

Highlights:

• Visa and Mastercard have integrated stablecoin support infrastructure.

• Analysts expect both firms to monetize stablecoin-based payments.

• Crypto disruption viewed as an evolution opportunity, not a threat.

Payment Ecosystem Faces Long-Term Tech Transition

The broader payment sector faces an evolving competitive landscape with fintechs, crypto firms, and large merchants exploring alternate transaction rails. However, the embedded network effects of Visa and Mastercard — including consumer trust, global merchant acceptance, and fraud protection capabilities — provide meaningful insulation against rapid disintermediation.

While stablecoin issuance by retailers might alter short-term perceptions of disruption risk, analysts agree that card networks are deeply entrenched in the global financial infrastructure. Adoption curves, regulation, and consumer inertia all point to gradual evolution rather than abrupt replacement of traditional systems.

Highlights:

• Payment incumbents benefit from network effects and global infrastructure.

• Regulatory frameworks and consumer trust favor existing rails.

• Stablecoin impact likely to unfold over years, not quarters.
  
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