AllianceDAO Co-founder: Stablecoin payments are unlikely to replace card organizations like Visa in the short term

Odaily Planet Daily reports that AllianceDAO co-founder QwQiao posted on the X platform stating that some opinions believe that new payment rails like stablecoins have the potential to replace card organizations such as Visa and Mastercard. The reasoning is that merchants need to bear about 3% of the card processing costs, but this judgment overlooks the fee distribution structure. He pointed out that in a $100 transaction with approximately $3 in fees, about $1.8 is returned to consumers in the form of cashback or points, approximately $0.45 goes to the issuing bank, about $0.6 to the acquiring bank, and only around $0.15 is received by the card organization. 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 scale effects over the long term.