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 FacebookShare on TwitterShare 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 FacebookShare on TwitterShare 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

    ai phishing

    The Fraud Epidemic Is Testing the Limits of Cybersecurity

    February 6, 2026
    stablecoins b2b payments

    Stablecoins and the Future of B2B Payments: Faster, Cheaper, Better

    February 5, 2026
    Payment Facilitator

    The Payment Facilitator Model as a Growth Strategy for ISVs

    February 4, 2026
    Simplifying Payment Processing? Payment Orchestration Can Help , multi-acquiring merchants

    Multi-Acquiring Is the New Standard—Are Merchants Ready?

    February 3, 2026
    ACH Network, credit-push fraud, ACH payments growth

    What’s Driving the Rapid Growth in ACH Payments

    February 2, 2026
    chatgpt payments

    How Merchants Should Navigate the Rise of Agentic AI

    January 30, 2026
    fraud passkey

    Why the Future of Financial Fraud Prevention Is Passwordless

    January 29, 2026
    payments AI

    When Can Payments Trust AI?

    January 28, 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

    ©2024 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