I recently bought something on eBay and noticed that one of the payment options was "pay directly via bank transfer." After selecting it, a bank selector appeared. I chose my bank, opened my banking app, and confirmed the transaction. This wasn’t my first time using this method; I remember doing something similar when buying a plane ticket from Ryanair. I believe this standard is called "Open Banking."
While this is the norm in the UK, other countries are developing similar solutions: Spain has Bizum, Germany is adopting Wero, and Brazil uses PIX.
Even though I’m not a fan of having so many different payment standards, I can see the appeal. Visa is often expensive and slow, creating a genuine demand for alternative competitors in the market. I have my doubts about the long-term future of Visa, as these competitors will eventually capture significant portions of their market share.
The future of VISA/Mastercard
byu/Anxious-Guarantee-12 ininvesting
Posted by Anxious-Guarantee-12
5 Comments
Visa and mastercard are just extensions of the fascist burger empire, more countries including the EU are looking into forms of payment that dont provide tithe to murican companies.
Why should our money go to an evil empire on the other side of the planet, this is something more and more people are figuring out.
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I think this would only catch on if the merchants pass on the savings onto consumers with lower pricing. It makes sense for the merchants but I’m not seeing what the consumer gets out of it if the price is the same. There’s not a lot of upside, but on the downside it would likely be more difficult to get a refund if your bank already sent the money to the merchant. However if merchants start charging credit card surcharges (effectively giving a discount to non-credit card customers) I could see this sort of thing taking off.
The decoupling is definitely happening. Europe never before gave it much thought before, but knowing that an some autocrat from a foreign power can use an executive order and kill all card payments for the entire continent has become a real threat.
I don’t think it will happen soon, but the genie is out of the bottle now.
Visa and Mastercard will always have a very prominent place simply because consumer protection on credit cards is second to none in the entire space. Every nation has its own payment preference. In the US that preference is credit/debit cards. In Europe, its mostly debit cards. In China its mostly alipay and wechat pay.
Lots of users want to pay with bank, and companies would certainly prefer it because its cheaper to accept and no risk of chargeback. But that will always be the minority in the US. Visa is launching their own pay by bank solution. Mastercard had their own, but they pulled back a bit. Stripe has their own.
Fear of visa / mastercard / amex issuing is overblown. The name of the game is ease of integration, in which Visa/Mastercard dominate.