June 19, 2025 – Mastercard Incorporated (NYSE: MA) saw its stock price drop by 5.39% on Wednesday, June 18, 2025, closing at $538.73, as investor fears mounted over the U.S. Senate’s passage of the GENIUS Act, a new stablecoin legislation. The sharp decline, which erased billions in market value, was triggered by reports that major retailers like Amazon and Walmart are exploring stablecoin payments to bypass traditional credit card networks, potentially threatening Mastercard’s core revenue streams.
The GENIUS Act, designed to provide regulatory clarity for stablecoins—digital currencies pegged to assets like the U.S. dollar—has opened the door for merchants to adopt these tokens for transactions. Posts on X and a Wall Street Journal report highlighted discussions among multinational giants, including Amazon, Walmart, and Expedia, about issuing their own stablecoins. These developments could allow retailers to sidestep payment processors like Mastercard and Visa, slashing transaction fees by up to 85%. Visa shares also fell 4.88% on the same day, reflecting similar concerns across the payment industry.
“Stablecoins represent a potential paradigm shift in how payments are processed,” said financial analyst Andrew Jeffrey of William Blair, who nonetheless urged investors to see the sell-off as a buying opportunity. Jeffrey argued that consumer habits, entrenched in credit and debit card use, and the lack of stablecoin standards would slow widespread adoption. Barclays echoed this sentiment, maintaining a $650 price target for Mastercard and calling fears of disruption “overblown.”
Mastercard’s business model relies heavily on swipe fees, which are charged to merchants for each card transaction. In 2024, the company reported $7.5 billion in Q4 revenue, a 14% year-over-year increase, driven by robust consumer spending and a 20% surge in cross-border volume. However, the prospect of stablecoins enabling direct, low-cost payments has rattled investors, especially as retailers seek to reduce costs amid inflationary pressures.
Despite the drop, some analysts remain optimistic about Mastercard’s resilience. The company has proactively integrated stablecoin capabilities into its network and partnered with crypto platforms to facilitate real-time global payments. “Mastercard’s adaptability and diversified services, including fraud protection and digital payment solutions, position it well to navigate this challenge,” said Bloomberg Intelligence analyst Diksha Gera.
The broader market context also played a role, with heightened geopolitical tensions following Israeli airstrikes on Iran contributing to a cautious investor mood. However, no company-specific operational issues were cited as driving the decline.
As of June 19, 2025, Mastercard’s market capitalization stands at $517.1 billion, with shares trading at a price-to-earnings ratio of 41.4, reflecting a premium valuation. The company’s next earnings report, due July 23, 2025, will be closely watched for guidance on how it plans to address emerging competition from stablecoins.
For now, the payment giant faces a pivotal moment as it balances innovation with the risk of disruption. Investors are left weighing whether the stablecoin threat is a long-term challenge or a short-term overreaction.