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

Odaily Planet Daily reports that QwQiao, co-founder of AllianceDAO, published an article on the X platform stating that some believe new payment channels such as stablecoins have the potential to replace card organizations like Visa and Mastercard, arguing that merchants bear approximately 3% of transaction costs. However, this assessment overlooks the fee distribution structure. He points out that in a $100 transaction with approximately $3 in fees, about $1.80 returns to the consumer in the form of cashback or points, about $0.45 goes to the issuing bank, about $0.60 goes to the acquiring bank, and the card organization receives only about $0.15. QwQiao states that this structure creates a stable incentive relationship between consumers, banks, and card organizations within the same network, while the related costs are primarily borne by merchants with relatively weaker bargaining power. This is one of the key reasons why traditional card payment networks have maintained economies of scale for so long.