Last updated on January 3rd, 2026 at 03:08 pm
Quick Breakdown
- Merchants lose ~3% per card transaction to interchange, scheme, acquirer, and processor fees.
- Stablecoins reduce costs to under 1% while enabling near-instant, cross-border settlements.
- Blockchain-based payments improve transparency, traceability, and programmable compliance.
Merchants continue to lose roughly 3% of each card transaction to hidden fees embedded in the legacy payments system, prompting growing interest in stablecoins as a faster and cheaper alternative. According to a report by OSL, a $10,000 card payment often results in the merchant receiving only $9,700 after interchange, scheme, acquirer, and processor fees are deducted.
A $10,000 payment. The merchant gets $9,700.
Where did the $300 go? 🤔Interchange. Scheme fees. Acquirer fees. Processor markups.
The invisible 3% tax baked into every card swipe 💳💸No wonder businesses are looking for faster, cheaper settlement rails 🌐⚡️
Full breakdown 👉… pic.twitter.com/NdrFTAEfLu— OSL (@osldotcom) December 1, 2025
The invisible tax on card transactions
The traditional Four Corners model, comprising the cardholder, issuer, acquirer, and merchant, has powered payments for decades, but it introduces friction and additional costs at every stage. Interchange fees of 1.5% to 2.5% mainly flow to issuing banks to cover credit risk and fund rewards programs. On top of that, scheme fees, acquirer charges, and processor markups can push total costs close to 3%, creating what many merchants see as an ongoing “invisible tax.” Cross-border payments are even slower and more expensive, relying on correspondent banks and ageing settlement rails that can take two to five business days to processoften at several times the cost of domestic transactions.
Stablecoins offer direct, transparent payment solutions
Stablecoins eliminate most intermediaries, allowing near-instant settlements between sender and receiver wallets. This reduces costs from around 3% to under 1%, enabling full transaction traceability. Unlike legacy systems, stablecoin payments operate on programmable, blockchain-based infrastructure, improving compliance, transparency, and efficiency. Analysts emphasize that stablecoins do not compete with money itself but are reshaping the rails over which value moves, making them increasingly attractive for both domestic and cross-border transactions.
As businesses seek faster, cheaper, and more transparent payment methods, the adoption of blockchain-based stablecoins is accelerating. The OSL report underscores how digital assets are beginning to challenge entrenched legacy systems, offering merchants a practical solution to reduce fees, improve settlement speed, and gain real-time visibility over financial operations.
In a parallel move, OSL Group has also formed a strategic alliance with MetaComp Pte Ltd, a firm licensed by the Monetary Authority of Singapore (MAS). The partnership will expand compliant digital asset infrastructure between Hong Kong and Singapore, focusing on cross-border stablecoin payments, tokenized RWAs, and institutional-grade liquidity solutions.
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