It seems that the biggest European banks find the time has come to establish an own card company. Can be a new card company successful against the duopoly of VISA and MaterCard, so that China wants to establish its own one?
It's not easy to answer yes to that question at first sight. However note that the NCF (Near Field Communication) chip integrated hand held devices can bring the biggest change from existence about card usage. I've found the following motivation about players:
- Bidding on each other the manufacturer strive to implement the function to the market
- Banks don't want to miss the opportunity offered
- Card companies take them role for granted in clearing and settlement
- Telephone companies take themselves far away from that improvement
The question which mostly defines the players' position in the future is there can be any alternative to card company networks. If not the European card company can easily distinguish itself from rivals with novel product and valuable services. The supporter
big banks can easily finance the project until it reaches the critical mass. From that point however the owners can expect significant profit, because the operation of a card network is a good business.
If there can be any alternatives to card companies than not only European company, but all market players future is questionable. Strangely mobile network operators can be the only concurrency. But players are heavily concurring each other, which significantly
turns off them possibility. Without collaboration it is inconceivable that become successful in that field.
There are indicators that some of market players have been seeking alternatives of card networks. If they succeed, the new services will completely redraw the market.