AllianceDAO co-founder: Stablecoin payments are unlikely to replace card organizations like Visa in the short term
According to Odaily, AllianceDAO co-founder QwQiao posted on X, stating that some believe stablecoins and other new payment rails may replace card organizations such as Visa and Mastercard, reasoning that merchants bear about a 3% card transaction cost. However, this view overlooks the fee distribution structure. He pointed out that in a $100 transaction with about $3 in fees, approximately $1.8 is returned to consumers in the form of cashback or points, about $0.45 goes to the issuing bank, about $0.6 goes to the acquiring bank, and the card organization only receives about $0.15. QwQiao stated that this structure creates a stable incentive relationship among consumers, banks, and card organizations within the same network, while the related costs are mainly borne by merchants with relatively weaker bargaining power. This is also one of the key reasons why traditional card payment networks have maintained their scale effect over the long term.
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