Why Payment Stablecoins Are Crushing Credit Card Profit Margins

Episode 39 of Crypto Tech with Fexingo. Visa and Mastercard have long dominated payment fees, but a new wave of stablecoin-based rails is quietly eating into their 2-3% merchant discount. Lucas and Luna break down how Circle's USDC and Paxos's latest settlement network process transactions at 0.1% or less, and why that 200-basis-point gap is forcing legacy card networks to adapt. They reference recent 5-day performance data: Visa up 0.8%, Mastercard up 1.7%, while PayPal — which tried its own stablecoin pivot — slid 7%. The hosts also explore a Hong Kong startup that just tokenized merchant settlement for 500 small businesses, cutting chargeback fraud by 60%. If you're wondering why your local coffee shop now offers a 5% discount for 'stablecoin pay' versus credit card, this episode explains the math behind that sticker on the counter. #Stablecoins #PaymentRails #Visa #Mastercard #USDC #Paxos #MerchantDiscount #CryptoPayments #Fintech #Blockchain #DecentralizedFinance #Tokenization #ChargebackFraud #HongKong #CrossBorderPayments #Technology #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo