/payments

News and resources on payments systems, innovations and initiatives worldwide.

Discussion
Is VISA a colossus on clay feet?
Howard Elsey

Howard Elsey

  It'll work in the EU as the EU have had the schemes in their sights for some time - hence SEPA.  SEPA was a fundamental building block toward this and regulation (PSD2) helps their case. But there's where it then becomes difficult. Like it or not the card schemes are the only truly global networks. And yes, there were built on top of various bank networks but they joined them and provided a convenience and trust through their scheme rules. Tech is fallible but people are too and the rules address both.  That's why they are such huge global brands and all of these factors are huge - for the consumer - an interested party that wasn't mentioned in the article. Can Visa be toppled? Yes.  Will they be?  Well, a bit behind their competitor MasterCard, but they are trying.  They don't own rails as MasterCard do. They have tried to make significant acquisitions to help but have been thwarted.  So the jury is out but there'a long game to play and the consumer has a lot of sway.  They don't change habits or likes so easily.  The young can and do but will their new habits be life long?  And do they have the power of money in comparison to the more habitually entrenches older generations? 
Is VISA a colossus on clay feet?
Ketharaman Swaminathan

Ketharaman Swaminathan

  It's a free world, there's nothing stopping anyone from doing anything but, in the real world of business, it's customary for companies to do more of what works and less of what does not work, so that they maximize shareholder value and / or stop themselves from squandering away their limited resources and die.  So, yes, even if the jackpot is still there, it doesn't mean new companies should waste time trying to do something that killed so many of their ilk earlier. Espeially since there are so many other jackpots out there offering better chances of success.   In the extreme case, despite all of the above, if a company is hellbent on being delusional, the community can avoid platitudes on the way of the company committing harakiri and, instead, at least provide some guidance, however impractical it might be, for the company to achieve success. As I'd done in my comment below Mastercard bids to bypass own rails with Pay by Bank app promotion: "A new PSP with 2X Rewards and 0.5X MDR of Visa / MasterCard will be highly disruptive. It won't be profitable. But that hasn't stopped VCs from funding disruptive startups."
Is VISA a colossus on clay feet?
Gerard Hergenroeder

Gerard Hergenroeder

  There have many attempts to bring alternatives to Visa and MasterCard. As a former employee of both entities I know they are a market force with lots of money and a brand that is trusted. To start a new global brand and technology platform would cost billions of dollars. Technology has indeed taken quantum leaps. If they had to do it all over again their solutions would much more superior than the current two message system. i remember when it took 4 weeks for an international transaction to clear. Both have made significant steps in their authorization and clearing systems. But much more needs to be done. I would advise both Visa and MasterCard to build their next generation solutions using a single message while at the same maintaining in parallel their two message system for some period of time.There are newer technology solutions in the market; e.g.. Faster Payments.
Is VISA a colossus on clay feet?
Maxim Kazakov

Maxim Kazakov

  If somebody failed trying to do something, there is no reason not to try again mainly because the jackpot is still there.
Payments Analysis
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