Paying with stablecoin on “super apps” like Robinhood or Kraken will cut costs by at least three percentage points compared to traditional Visa and Mastercard circuits.
According to Jan Van Eck, CEO of VanEck, the super apps are about to revolutionize global payments thanks to a new regulatory framework just signed by President Trump.
Why can super apps revolutionize stablecoin payments?
President Trump signed the GENIUS Act on Friday, June 14, 2024, a law that introduces a strict regulatory framework for companies issuing stablecoins intended for payments.
For the first time in the United States, a stringent regulation is established to ensure safety, transparency, and reliability for users and operators in the sector.
The law aims to prevent abuses, fraud, and systemic risks by accelerating the adoption of stablecoin even on fintech and social platforms.
According to the interview with Jan Van Eck on CNBC Television, the new apps that integrate stablecoin operate without intermediaries, eliminating fees traditionally imposed by Visa and Mastercard. Today these networks retain up to 3% on each transaction.
The super app like Robinhood, Kraken, and X can offer much cheaper and immediate payments and transfers, breaking down entry barriers for new operators and increasing international competition.
“In this scenario, we will witness strong pressure on the costs of the payment system,” says Van Eck. “More and more competitors are coming, and many will be super apps.”
Circle, issuer of the main stablecoin with public visibility after the recent IPO, has recorded significant growth in the early months of 2024.
Ethereum, the leading blockchain in the sector, experienced an exceptional April in terms of capitalization and media attention.
Van Eck emphasizes: “The market is already moving in advance of future prospects. However, we are only at the beginning. The incumbent like Circle will be joined by a multitude of new players in the payment stablecoin sector.”
The stock market is also reacting: “It will take several quarters before we see concrete impacts on the earnings of the main players, both in a positive and negative sense, but investors are already on the move to position themselves on the news,” explains Van Eck.
What is a super app and what advantages does it offer to users?
A digital all-in-one platform that integrates payment services, asset exchange, social network, and financial management is defined as a super app. Through stablecoin and DeFi technologies, these applications allow:
- Instant and low-cost payments
- Management of one’s own wallet independently
- Access to advanced financial instruments
- Cross-border transactions without currency exchange
Super apps like Robinhood, Kraken, and X are ready to offer integrated services by leveraging the new regulatory framework. The result? Greater freedom for users and a drastic downsizing of the role of traditional banks in payments.
The new framework makes stablecoins more secure, but the parallel growth of competition signals a very competitive phase and uncertain. Van Eck warns: “The effects on earnings will be seen in several months.
But with the arrival of many new digital entities, the system of incumbent could experience unprecedented pressure on margins.”
In addition to the benefits of cost and flexibility, potential operational and cyber risks remain to be monitored, especially for young or non-consolidated platforms, also in terms of anti-fraud and regulatory compliance.
What happens now: how will digital payments change?
The signing of the GENIUS Act by Trump places the United States at the forefront of regulations for stablecoins and paves the way for a wave of new super apps in financial services.
Next year will see the arrival of many competitors ready to displace Visa, Mastercard, and the main banking players from the public’s payment habits.
The Trump Effect on the sector is evident: now eyes are on the implementation of the new regulations and on the first moves of the big apps like Robinhood, Kraken, and X.
Everything can change in the coming weeks: those who want to anticipate the market will need to closely follow the evolution of payment stablecoins and discover which super app will establish itself as the new global standard.