Favourable Information stablecoin adopts Mastercard, Visa, analysts: now is a good time to buy the dip.

With the stablecoin bill nearing approval, reports have emerged that giants such as Walmart, Amazon, and the Expedia Group are considering issuing their own stablecoins to bypass credit card issuers like Visa and Mastercard, leading to a big dump for Mastercard and Visa on Friday. However, multiple analysts pointed out that stablecoins are still not quite suitable for corporate-to-consumer business activities, and Mastercard and Visa have actively integrated stablecoin features, reiterating their outperform rating, making it a good time to buy the dip!

Mastercard and Visa fell over 6%

The Wall Street Journal reports, citing anonymous sources, that companies like Walmart and Amazon are recently discussing the issuance of their own stablecoin in the United States, which is putting pressure on the industry. In addition to large merchants, other multinational giants such as airlines and the Expedia Group are also considering issuing their own crypto tokens to bypass credit card issuers like Visa and MasterCard. Stablecoins are typically pegged to currencies like the US dollar, making these tokens usable for payments.

Mastercard's stock price fell 6.2% on Friday, while Visa's stock price dropped over 7.1%, marking the largest single-day declines for both companies in about two months. The stock prices of payment companies such as American Express Co. ( and PayPal Holdings Inc. also declined during intraday trading.

Although the news caused Visa and Mastercard's market value to evaporate by over $60 billion, analysts say now is a good time to buy these two companies' stocks at a low price.

Analyst: Good time to buy Mastercard and Visa on dips

According to a report by Bloomberg, Andrew Jeffrey, an analyst at William Blair, wrote: We encourage investors to buy shares of Visa and Mastercard while their stock prices are weak, and reaffirm our outperform ratings for both companies.

He believes that consumers have become accustomed to using credit cards and debit cards, and these habits will not change quickly. Currently, stablecoins are still not very suitable for business activities targeting consumers, although merchants view stablecoins as a potential means to reduce credit card costs.

Mastercard and Visa have actively integrated stablecoin features.

Diksha Gera from Bloomberg Industry Research stated that the fall in stock prices on Friday reflects concerns that stablecoins may erode their market share and profit margins, but these concerns are premature. This is because Visa and Mastercard have actively integrated stablecoin functionalities, but lingering trust and regulatory hurdles, as well as a longer adoption curve for consumers, may also hinder widespread adoption.

BMO Capital Markets analyst Rufus Hone also agrees that the likelihood of stablecoins being widely used in the consumer payment sector is low, but he stated that even with the adoption of stablecoins, Visa and Mastercard would still benefit.

Hone wrote in a report that they are not sitting idle waiting to be disrupted – both companies already have the capability to handle and settle consumer payments on the stablecoin track. We believe they will be able to achieve transaction monetization in the stablecoin environment and maintain an outperform rating for both companies.

This article discusses that stablecoins benefit Mastercard and Visa, with analysts stating that now is a good time to buy on the dip. Originally appeared in Chain News ABMedia.