Patrick Cooley
2 min read
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Payment processing giant Fiserv is developing an infrastructure for its merchant customers to pay for goods and services with cryptocurrencies, the company’s CEO, Mike Lyons, said in a presentation last week.
The Milwaukee-based company has heard from its merchants clients that they're interested in using cryptocurrency such as stablecoins, a common type of digital asset, Lyons said in a June 3 question and answer session at the Baird Global Consumer, Technology and Services Conference in New York City.
“We’re hearing from merchants, ‘Hey, maybe this has got a lot less interchange,’” Lyons said in response to a questions about merchants and banks using stablecoins. “We’re going to help them develop the capabilities.”
The company should also be prepared if a federal bill regulating stablecoins is signed into law, he added.
What if Congress passes a cryptocurrency law “and we suddenly have to stand up a (cryptocurrency) wallet and we’re told to do it in X number of months?” Lyons said. “That seems like a significant investment.”
The Senate may vote as early as this week on the GENIUS Act, a bill creating a regulatory framework for stablecoins. The House of Representatives has yet to vote on the bill.
Stablecoins are a type of cryptocurrency pegged to the value of a traditional asset, such as a fiat currency like the U.S. dollar or the euro. Theoretically, the value of a stablecoin is less volatile than that of other types of cryptocurrencies such as Bitcoin, that tend to be volatile.
Payment companies have held up stablecoins as a way to simplify and cheapen cross-border payments, among other possible uses, but so far the digital assets have not achieved widespread adoption.
Fiserv is working on creating the infrastructure for its customers to use stablecoins, Lyons said. He did not provide a timeline, but said “in the next week or two, we'll come out with something that talks about standing up some infrastructure.”
Lyons provided few details about the plans, and a Fiserv spokesperson declined to provide more specifics.
The process will likely involve helping clients create stablecoin wallets they can use to spend money using the digital assets, he said.
Merchants are interested in stablecoins as a way to save on costs, like avoiding fees charged when credit cards are used, Lyons said. “It's a great opportunity that plays right into our strengths,” he said
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