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Data for this episode of Truth In Data is provided by Mercator Advisory Group’s report – Are You Prepared for Mastercard and Visa to Enter Your Market?
- Visa Next is an open API interface designed to allow rapid deployment of new payment platforms by banks
- Opportunity: To deploy an advanced payment platform that is similar to those in market today by mostly fintechs
- Opportunity: To build vertical market capabilities that differentiate the bank on Visa Next platform
- Opportunity: To extend relationships with commercial clients by developing custom solutions for them on Visa Next
- Risk: Investment in a marketplace, or investment in a solution in a marketplace, which fails to develop
- Risk: Exposure to the risk that the marketplace blossoms and the financial institution fails to develop
About this report
New business units launched by the two large networks will compete with banks, processors, and fintech suppliers.
The debut of Mastercard Vyze and Visa Next should cause banks, credit unions, alternative finance suppliers, payment platform providers, acquirers, and payment solution providers to carefully evaluate their options. This Viewpoint describes the new business models and analyzes the opportunities and risks these new business models represent to other market participants.