Walmart, Amazon crypto payments bypassing traditional system would send shockwaves through US banks

Amazon, Walmart, Costco Wholesale, Starbucks and other large retailers and major companies, should explore creating and releasing their own cryptocurrency, but they should peg them to the US dollar or gold to make them more predictable and less volatile than Bitcoin et al (aka stablecoins).

That's according to Brittain Ladd, a supply chain consultant and former Amazon executive.

In a LinkedIn post, in which he refers to a Wall Street Journal article claiming that Walmart and Amazon are exploring this option in the US, Ladd said: "I first wrote about this topic in 2015, and I’ve mentioned it multiple times in posts and on podcasts since then. My argument is that due to their size, it makes no sense for large retailers to have to utilise banks and credit card companies like Visa and American Express. The companies should create their own products, financial system and infrastructure."

Stablecoins, he argued, could allow merchants to circumvent traditional payment rails, which cost them billions of dollars in fees each year, including the interchange fee they pay when customers make purchases using their cards.

He added: "Merchants have long tried to launch payment alternatives to get around the card-based system that is dominated by Visa and Mastercard, though most of those have failed to gain traction. Amazon’s efforts are still in the early stages, and some of the talks have centred on having the company’s own coin for online purchases. This is exactly what I believe makes the most sense - Amazon and other companies should have their own coins."

Walmart, meanwhile, has long sought to get into financial services, where it could leverage its network of millions of weekly customers and employees. It has in recent years waded deeper into the industry through its FinTech unit. Walmart should arguably be the largest bank in the USA with the most branches and the best rates, Ladd believes.

He concluded: "A move to launch a crypto-based payments system by Walmart or Amazon that bypasses the traditional payments system would send shockwaves through the nation’s banks. With vast networks of customers and employees, troves of data and far lighter regulations, retail and technology companies have long been viewed as particular threats to banks, including regional and community lenders.”

“The “push to instant payments is inevitable and represents a risk” to Visa and Mastercard, TD Cowen analyst Jaret Seiberg said in a note. Will it happen? Yes. I believe it will and I believe it should."

2025 RTIH INNOVATION AWARDS

Payments will be a key focus area at the 2025 RTIH Innovation Awards.

The awards, which are now open for entries, celebrate global tech innovation in a fast moving omnichannel world.

Our 2024 hall of fame entrants were revealed during an event which took place at RIBA’s 66 Portland Place HQ in Central London on 21st November, and consisted of a drinks reception, three course meal, and awards ceremony presided over by comedian Lucy Porter.

In his welcome speech, Scott Thompson, Founder and Editor, RTIH, said: “The event is now into its sixth year and what a journey it has been. The awards started life as an online only affair during the Covid outbreak, before launching as a small scale in real life event and growing year on year to the point where we’re now selling out this fine, historic venue.”

He added: “Congratulations to all of our finalists. Many submissions did not make it through to the final stage, and getting to this point is no mean feat. Checkout-free stores, automated supply chains, immersive experiences, on-demand delivery, next generation loyalty offerings, inclusive retail, green technology. We’ve got all the cool stuff covered this evening.”

“But just importantly we’ve got lots of great examples of companies taking innovative tech and making it usable in everyday operations - resulting in more efficiency and profitability in all areas.”

Congratulations to our 2024 winners, and a big thank you to our sponsors, judging panel, the legend that is Lucy Porter, and all those who attended November's gathering. 

For further information on the 2025 RTIH Innovation Awards, please fill in the below form and we will get back to you asap.