What: The US Senate's Genius Act of 2025 paves the way for banks, fintech firms, and major retailers to issue stablecoins, while industry experts debate their potential impact on retail payments.

Why it is important: The convergence of regulatory clarity, major retailer adoption, and growing consumer interest in stablecoins (65% according to recent surveys) indicates a significant shift in retail payment infrastructure that could fundamentally alter transaction economics.

The retail industry stands at a pivotal moment as the US Senate's passage of the Genius Act creates a regulatory framework for stablecoin adoption. This groundbreaking legislation enables banks, fintech firms, and major retailers like Amazon to issue their own stablecoins or integrate them into existing payment platforms. Unlike volatile cryptocurrencies, stablecoins maintain a steady value pegged to fiat currencies, making them practical for everyday transactions. Major players are already embracing this technology, with Shopify implementing USDC payments and both Amazon and Walmart exploring stablecoin solutions to reduce transaction fees. Consumer sentiment appears favourable, with recent studies showing that 21% of American adults own cryptocurrency, and 39% of crypto holders use it for retail purchases. However, experts like CI&T's Melissa Minkow caution that consumer trust and interest will ultimately determine adoption rates. The potential benefits for retailers include lower transaction costs and enhanced loyalty schemes, though implementation will require significant resources and careful consideration of consumer preferences.

IADS Notes: The retail payment landscape has undergone significant transformation throughout 2024-2025, with stablecoins emerging as a potentially revolutionary force. In January 2025, a16z reported that stablecoins could increase retailer profitability by up to 60% through reduced transaction fees, a finding that supports the article's emphasis on cost reduction benefits. This potential was demonstrated in practice when Printemps became Europe's first department store to accept cryptocurrencies in November 2024, followed by Shopify's integration of USDC payments. Consumer interest has grown substantially, with a December 2024 Capital One survey revealing that 65% of consumers desire cryptocurrency payment options, particularly for daily retail purchases. The regulatory environment has also evolved, from the March 2024 Visa-Mastercard USD 30 billion settlement over swipe fees to the recent Genius Act, indicating a shift towards embracing digital currency innovation. With mobile payments reaching 70% of global sales by January 2025, and cross-border transactions during the 2024 Black Friday weekend totaling USD 3.2 billion, the infrastructure for stablecoin adoption appears increasingly robust.

Are stablecoins the future of retail payments? Experts weigh in