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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?
- Mastercard’s Vyze solution is creating a marketplace for consumer financing through the merchant
- Finance companies create loan structures, merchants select the loan they expect will be appealing, then match the best rate with consumers in store
- The big opportunity for Banks is to enter the alternative finance market in a simple fashion
- One risk top banks is the cost of not joining now – could be a lot more expensive to join later
- Understanding merchant needs is not bank’s strongest suit though, and this is a risk
- Should the Vyze marketplace expand rapidly, banks that are not participating may risk a reduction in their card processing volume
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.
