Will Competition Take a Bite Out of Interchange?

IDC
August 7, 2008
7 Pages - SKU: IDC1870082
License type:

This Financial Insights Perspective provides the FinTech Advisor's weekly perspective on the financial services industry. It provides financial institutions with timely guidance about maximizing one's technology investments. This week's issue is within the payments area.

New competitors are taking on Visa and MasterCard's interchange pricing scheme as both firms have been busy defending themselves against claims of duopoly pricing. The potential for competitive alternatives may never be better. Are card issuers and the networks (primarily Visa and MasterCard) vulnerable to competitive card-based alternatives? How will this story play out?