PaymentsJournal
No Result
View All Result
SIGN UP
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
PaymentsJournal
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
No Result
View All Result
PaymentsJournal
No Result
View All Result

Why MasterCard Couldn’t Be Happier About Visa’s $15 Billion European Megadeal

By Alex Johnson
July 31, 2015
in Analysts Coverage
0
0
SHARES
0
VIEWS
Share on LinkedIn
Credit card attack.

Credit card attack.

It may sound paradoxical, but Visa’s planned takeover of its former European subsidiary may end up being a blessing for Visa’s biggest competitor:

“A merger would likely mean Visa Europe charges significantly higher rates since its current fee structure is set by a not-for-profit organization of more than 3,000 banks, who are also its customers. And that would allow MasterCard to remain competitive while raising its own rates — and targeting a large roster of new customers. Visa CEO Charles Scharf hopes to conclude talks with Visa Europe, spun off in a 2007 reorganization before the parent company went public, by October.”

“It’s clearly a benefit for MasterCard because when you take a competitor that is not-for-profit and make it for-profit they will compete more rationally,” Robert Napoli, an equity analyst with William Blair, said in a phone interview. “Visa Europe’s revenue yields and the profitability yields are much lower than anywhere else in the world, and that’s because Visa Europe is under-pricing its product.”

That said, both companies are likely to face ongoing challenges in Europe:

“While a Visa merger would create an opportunity in Europe, generating more money in the region wouldn’t be without its challenges, Banga cautioned. European consumers tend to prefer debit cards to credit cards, he said, and that means lower yields for both companies.

Additionally, European card-issuers’ earnings are being curbed by heightened regulation and that may make them less willing to renegotiate agreements with payment processors like MasterCard, Banga said.”


Overview by Alex Johnson, Sr. Analyst, Credit Advisory Service, Mercator Advisory Group

Read the full story here

0
SHARES
0
VIEWS
Share on LinkedIn
Tags: Credit

    Get the Latest News and Insights Delivered Daily

    Subscribe to the PaymentsJournal Newsletter for exclusive insight and data from Javelin Strategy & Research analysts and industry professionals.

    Must Reads

    circle stablecoin

    As Prepaid Fraud Evolves, So Do the Rules

    September 21, 2026
    bots fraud, bank security in data sharing, J.P. Morgan fraud protection TSYS, 3D Secure 2.0

    The Evolution of 3D Secure Puts it at the Center of Fraud Prevention

    September 18, 2026
    fraud detection signals

    Why Fraudsters Look Trustworthy and Good Customers Look Suspicious

    September 17, 2026
    Fraud Monitoring, Nacha ACH Rules, Same Day ACH

    10 Years Running, Same Day ACH Continues to Break New Ground

    September 16, 2026
    stablecoin infrastructure

    To Unlock Stablecoins’ Potential, Infrastructure Gaps Must Be Resolved

    September 15, 2026
    Latin America payment orchestration

    Navigating Latin America’s Complex Payment Ecosystem

    September 14, 2026
    upi biometric

    Beyond Authentication: Rethinking Digital Identity Security

    September 11, 2026
    Fraud Monitoring, Nacha ACH Rules, Same Day ACH

    Nacha’s Upcoming Rules Refresh Is All About Improving Clarity

    September 10, 2026

    Linkedin-in X-twitter
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter

    ©2026 PaymentsJournal.com |  Terms of Use | Privacy Policy

    • Commercial Payments
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    No Result
    View All Result