VanEck CEO Jan Van Eck believes that “super apps” like Robinhood, Kraken, and X (formerly Twitter) are poised to shake up the traditional financial system’s payment methods.
Cheaper Payments with Stablecoins
Van Eck’s prediction centers on the use of stablecoins within these apps. Stablecoins, unlike traditional payment systems, bypass intermediaries like Visa and Mastercard, eliminating their roughly 3% transaction fees. This cost advantage makes super apps a compelling alternative. He stated, “This will put cost pressure on the payments system because it’s cheaper and allows many competitors to enter the market.”
New Regulations and Increased Competition
The recent passing of the GENIUS Act, establishing regulations for stablecoin issuers, is a significant factor. While companies like Circle have seen success, Van Eck anticipates a surge in new competitors. He notes that the market is already reacting, with companies like Ethereum and Circle (the only publicly traded stablecoin company) performing well. However, he cautions that the real impact on earnings will take several quarters to materialize.
Looking Ahead
The financial landscape is shifting, and the rise of super apps utilizing stablecoins could significantly alter how we make payments. The coming months will be crucial in determining the extent of this disruption.