Payment processors Fiserv, Block, and Stripe are integrating cryptocurrencies like stablecoins and Bitcoin to reduce transaction fees for merchants. These moves follow recent regulatory changes and aim to bypass traditional banks and card networks. However, experts note challenges in adoption and declining consumer interest.
In recent months, payment giants Fiserv, Stripe, and Block have announced ventures into digital assets. Block is enabling merchants to accept Bitcoin through its Square service, while Fiserv and Stripe focus on stablecoins, cryptocurrencies pegged to fiat currencies like the U.S. dollar for greater stability compared to volatile assets like Bitcoin.
These developments come after President Donald Trump signed the Genius Act in July, establishing a regulatory framework for stablecoins. Stripe launched a platform last week allowing customers to pay for subscriptions using stablecoins. Fiserv, based in Milwaukee, is partnering with the state-owned Bank of North Dakota to introduce the 'Roughrider' stablecoin and its own FIUSD stablecoin next year, aimed at moving money between banks and across borders.
James Stevens, a partner at Troutman Pepper Locke, explained the appeal: “There continues to be attempts to grow forms of payment that may result in [lower] transaction costs.” Merchants currently pay fees averaging 2.2% per credit card transaction to issuers, processors, and networks, per the Nilson Report. Tony DeSanctis of Cornerstone Advisors noted, “This is about the potential to provide merchants with another low-cost routing option.”
Block's announcement includes Bitcoin payment services with possible merchant discounts. Square offers no transaction costs initially, then low fees, as demonstrated by Compass Coffee in Washington, D.C., last week. Stevens highlighted this aligns with trends in transaction settlement and cost reduction.
Yet, challenges persist. Bill Maurer of the University of California Irvine said, “The jury is still out on what all this is going to mean,” adding customers are not demanding crypto payments. A Federal Reserve Bank of Kansas City report last month showed declining consumer use of cryptocurrencies for payments. Block's release warns of irreversible transactions and potential delays. Maurer emphasized processors are unlikely to pass savings to consumers, and Fiserv's infrastructure focus may give it an edge, per analysts.