Stablecoins Take Over the Payments Conversation—And Why Retailers Are Launching Their Own

Behind the Numbers: an EMARKETER Podcast | The Banking & Payments Show
Date: September 16, 2025
Host: Rob Rubin
Guests: Tiffany Montes (Principal Banking Analyst), Grace Broadbent (Payments Analyst), Susie David Cannon (VP of Content)

Episode Overview

In this episode, Rob Rubin and a panel of eMarketer analysts explore the surging interest in stablecoins—digital currencies pegged to assets like the US dollar. The discussion centers on why stablecoins are dominating industry conversations, how upcoming regulation and market forces are shaping their adoption, and why major retailers are considering rolling out their own. The team examines the technical, business, and consumer angles, offering lively predictions and insights for where payments might be headed.

Key Discussion Points & Insights

1. Why Are Stablecoins Taking Over the Conversation?

• Political and Regulatory Catalysts

  • The renewed hype around stablecoins is tied to recent political developments. Former President Trump’s administration aggressively supported the crypto industry, issuing executive orders to promote and regulate stablecoins, likely contributing to the momentum and buzz.

    “It was really the election of Trump that really kind of started this, like, new hype cycle. [...] He signed an executive order promoting stablecoins—to call for regulation to be developed around stablecoins and to just promote development of stablecoins overall.” —Grace Broadbent [02:52]

• Distinguishing Stablecoins from Crypto

  • Analysts stress the fundamental difference between stablecoins (pegged to a stable asset, e.g., USD) and traditional cryptocurrencies (volatile and asset-independent).
  • Retailers are more comfortable with stablecoins due to their consistent value, unlike the volatile nature of cryptocurrencies.

    “We have to make the distinction between crypto and stablecoin, which is pegged to a dollar. So from a retailer perspective, it’s easier to manage and handle.” —Susie David Cannon [04:20]

2. Regulation, Risk, and the Role of Trust

• Why Regulation Matters

  • With the prospect of retailers or banks issuing stablecoins (e.g., “Amazon coin”), the question becomes: Who ensures these coins are truly backed by reserves?
  • Examples like the collapse of Terra highlight past instability and the loss of consumer funds, underlining the urgency for clear regulatory frameworks.

    “If a company issues the stablecoin they have to—the government regulatory bodies [must] make sure that there is actually proper backing to that.” —Grace Broadbent [09:09]

• Analogy with Gift Cards and Loyalty Apps

  • Retailers already hold prepaid funds via apps and gift cards, but those are dollar-based and typically lack federally insured protections if the retailer folds.
  • Stablecoin holdings present similar risks unless regulation mandates backing and guarantees.

3. Payment Rails: Why Stablecoins, and Why Now?

• Potential Advantages Over Traditional Rails

  • Stablecoins blend the best aspects of fiat and digital currencies:
    • Speed: Real-time payment settlement, 24/7 availability.
    • Low Cost: Potentially lower transaction fees vs. credit card networks.
    • Traceability: End-to-end tracking of funds.
  • These attributes are driving both financial institutions and retailers to explore implementation.

    “You get the real time payment speed, you get the availability 24/7, you get the low cost, you get the end to end traceability. All the benefits of a traditional cryptocurrency are combined within the stability of the dollar. And that’s kind of the dream of the stablecoin.” —Grace Broadbent [10:15]

• Incumbent Payment Networks’ Response

  • Visa and MasterCard are moving swiftly to integrate stablecoin tech into their infrastructure to avoid being disrupted or bypassed.

    “They’re trying to put the technology in place so they’re not pushed out of the ecosystem. Do I think they’re going to get pushed out? Absolutely not. But they’re going to have to figure out in a new world where are they going to play.” —Tiffany Montes [11:15]

4. Industry Movements: Who’s Launching What?

• Banks’ Efforts and Partnerships

  • Major banks (JPMorgan, Bank of America, Citi, Wells Fargo) are reported to be working through consortiums like Early Warning Services and The Clearing House on bank-backed stablecoins.

    “It was reported in May that a consortium of the largest banks are working [...] to develop a bank-backed stablecoin.” —Grace Broadbent [12:20]

• Retailers’ Incentives

  • Large retailers—think Amazon, Walmart, Starbucks—see an opportunity to drive loyalty, reduce transaction fees, and borrow against future customer spend by issuing proprietary stablecoins.

5. Consumer Impact: What’s In It for the Average Shopper?

• Business-first Benefits

  • Retailers save on transaction fees; stablecoins could provide them with a new, interest-free cash flow from customer-prepaid balances.

    “The retailer needs this because they’re getting squeezed. There’s so much money in transaction fees. So using a stablecoin ... they’re going to save money on the transaction fees. [...] But there’s also a new cash revenue stream.” —Susie David Cannon [14:09]

• Consumer Hesitations and Required Incentives

  • Analysts agree: end consumers will need compelling incentives to load and use retailer stablecoins (e.g., rewards, discounts, instant refunds).

    “I do think consumers are going to take some convincing. [...] On the retail side they will need convincing and whether it’s Amazon—it’s part of their loyalty program to use it and you get benefits that way or other kind of discounts or rewards.” —Grace Broadbent [15:35]

  • Existing behaviors (such as topping up a Starbucks card automatically) show a foundation to build on—but broad adoption depends on showing direct consumer value.

• Barriers for Underbanked or Lower-income Consumers

  • Those living paycheck to paycheck may find little value in locking up funds, especially if there’s no credit component.

    “I don’t know that the paycheck to paycheck folks are the ones that are thinking about crypto. [...] It has to be a retailer that you frequent enough so you don’t feel like you’re leaving money on the table forever.” —Susie David Cannon [19:31]

6. The Looming Proliferation of Coins? Interoperability Fears

• Concerns Over Fragmentation

  • Analysts joke about a future with dozens or hundreds of competing retailer or bank-issued stablecoins, creating confusion and inefficiency.

    “So what, are we going to have like 32 million coins?” —Rob Rubin [14:04]

  • Parallels are drawn to today’s proliferation of loyalty programs; aggregation and agentic wallets (AI-powered finance sorting/management) may help smooth the experience.

7. What’s Next? Predictions for the Coming Year

• Expect More in Back-end Adoption First

  • The panel predicts headlines will focus on bank and infrastructure moves, with stablecoin usage ramping up first behind the scenes (improving speed and cost) before becoming commonplace in consumer-facing retail.

    “Next year, I think people will focus more on trying to solve real problems. [...] So I don’t think we’ll necessarily hear a lot about the customer facing aspect, but we’ll start to hear how it’s used in the background.” —Tiffany Montes [21:36]

• Biggest News: Major Bank Solutions Emerging

  • Expect announcements from the largest banks about their own “Zelle-like” stablecoin solutions.

    “I think the biggest headline in a year from now will probably be that the largest banks are launching some sort of their own solution.” —Grace Broadbent [22:14]

Notable Quotes & Memorable Moments

• “It was really the election of Trump that really kind of started this, like, new hype cycle.” —Grace Broadbent [02:52]
• “We have to make the distinction between crypto and stablecoin, which is pegged to a dollar. So from a retailer perspective, it’s easier to manage and handle.” —Susie David Cannon [04:20]
• “If a company issues the stablecoin, the government regulatory bodies [must] make sure that there is actually proper backing to that.” —Grace Broadbent [09:09]
• “Do I think [Visa and MasterCard are] going to get pushed out? Absolutely not. But they’re going to have to figure out in a new world where are they going to play.” —Tiffany Montes [11:15]
• “I do think consumers are going to take some convincing.” —Grace Broadbent [15:35]
• “So what, are we going to have like 32 million coins?” —Rob Rubin [14:04]
• “I really hope we’re not using 32 million different types of stablecoins next year.” —Grace Broadbent [22:46]

Timestamps for Key Segments

• 00:00 — 02:41: Introductions and setup; why stablecoins are front-page news
• 02:52 — 04:20: The Trump administration’s role and the distinction between stablecoins and classic crypto
• 05:46 — 09:09: How regulation makes (or breaks) trust in stablecoins; parallels to loyalty apps
• 10:15 — 11:58: What stablecoins offer compared to card rails and legacy payment systems
• 12:20 — 14:09: Banks, retailer plans, and the specter of too many competing coins
• 14:09 — 17:29: Consumer benefits, real-world use cases, and barriers to mass adoption
• 20:40 — 22:51: Predictions for 2026: bank launches, agentic wallets, and stablecoin consolidation fears

Summary Table: Stakeholder Perspectives

| Stakeholder | Why Interested in Stablecoins? | Key Challenges/Questions | |----------------|------------------------------------------|-----------------------------------| | Banks | Faster, cheaper transfers; staying relevant | Regulation, interoperability | | Payment Networks (Visa/MC) | Avoid disruption; revenue retention | Integration with core business | | Retailers | Reduce fees, loyalty/float, new revenue | Convincing consumers; regulatory compliance | | Consumers | Possible rewards/instant refunds | Complexity; trust; tangible benefits |

Final Takeaway

Stablecoins are moving out of the crypto fringe and into mainstream payments and banking conversations, propelled by regulatory momentum and industry adoption. Retailers and banks alike are exploring their own stablecoin offerings to improve efficiency, reduce costs, and build deeper consumer relationships. Yet for truly widespread use, industry players must deliver clear and compelling value to average consumers—while keeping regulation, interoperability, and trust front and center.