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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?
- HIGH RISK for processors: If Visa Next has implemented its own processing platform, then 3rd party processors are cut out
- Opportunity for processors: With robust card issuance business – plastic cards will be needed where participants lack a smartphone
- Opportunity to Acquirers: To enter into the issuing market to support merchants on the B2B and consumer-focused solutions
- Opportunity for Alternative Finance: Alt. finance will be difficult to implement for Visa Next, which makes an opportunity to existing vendors
- HIGH RISK for Fintechs: Any fintech with similar goals/tech as Visa Next’s API interface are in big trouble
- Fintechs that have solutions addressed by Visa Next (horizontal or vertical) can mitigate risk by moving immediately into partnership with Visa to gain temporary exclusivity
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.
