Seeking Alpha

Report: MasterCard and Visa have something brewing

  • MasterCard (MA +0.6%) and Visa (V +0.4%) have formed a new payment system group, according to a Bloomberg headline.
  • The companies haven't made any formal announcement yet.
  • Shares of the credit card giants are mildly higher with the scope of the initiative not yet known.
Comments (15)
  • chopchop0
    , contributor
    Comments (3228) | Send Message
     
    Sounds bullish.... i just hope that MA/V are cautious whatever this is as to not pique the interest of the government. This duopoly is a cornerstone of my portfolio
    7 Mar, 11:43 AM Reply Like
  • stoj
    , contributor
    Comments (300) | Send Message
     
    It's not a duopoly in the USA ( perhaps in other countries, that are behind the payment evolution )
    7 Mar, 12:23 PM Reply Like
  • chopchop0
    , contributor
    Comments (3228) | Send Message
     
    For all intents and purposes, it is. DFS and AXP do not have a significant debit presence, and their share of credit card transactions is also much smaller than V or MA (both at home and abroad).
    7 Mar, 03:27 PM Reply Like
  • baroquen@cox.net
    , contributor
    Comment (1) | Send Message
     
    Recently heard over the news that people are borrowing more than ever before. That would certainly include the use of MasterCard and Visa. After I heard the report, I bought MA even though analysts didn't report it as a "Buy."
    7 Mar, 12:59 PM Reply Like
  • civ-e
    , contributor
    Comments (339) | Send Message
     
    is V and MA at any risk of encroachment into their business by the likes of paypal systems and speculated Apple payment services? i do notice that some large retailers now accept paypal for online purchasing.
    7 Mar, 06:22 PM Reply Like
  • chopchop0
    , contributor
    Comments (3228) | Send Message
     
    In a word, no. Paypal and AAPL will still use either your bank account or payment processors like V or MA to process the transaction.
    7 Mar, 11:10 PM Reply Like
  • civ-e
    , contributor
    Comments (339) | Send Message
     
    chopchop, do you mind getting me up to speed on paypal; if paypal still must use a payment processor (V or MA) what's the difference between paypal and a regular bank account, that made it such a revolutionary driver in internet payments? what did it bring to the table that i couldn't be done with my bank account + V/MA?
    10 Mar, 04:30 PM Reply Like
  • chopchop0
    , contributor
    Comments (3228) | Send Message
     
    It created the convenience of not having to put your CC Info and address every time you paid on a website. You just had to login.
    10 Mar, 10:30 PM Reply Like
  • civ-e
    , contributor
    Comments (339) | Send Message
     
    so when you make a payment through paypal, it is (someone like) V/MA working in the background to deliver the payment?
    11 Mar, 12:40 AM Reply Like
  • chopchop0
    , contributor
    Comments (3228) | Send Message
     
    Correct. Paypal is the intermediary for the intermediary. The payment still shows up on your V or MA credit/debit card and is processed through them.

     

    V and MA have created their own "paypal" services called V.me and Paypass.
    11 Mar, 08:38 AM Reply Like
  • civ-e
    , contributor
    Comments (339) | Send Message
     
    that was great info to learn. thanks chop2.
    11 Mar, 11:42 AM Reply Like
  • Cancun 60
    , contributor
    Comments (20) | Send Message
     
    MA has been dead money since the 10-1 split so we need something positive to drive higher share price.
    7 Mar, 10:27 PM Reply Like
  • bamiller01
    , contributor
    Comments (25) | Send Message
     
    I'm hoping it's just taking a break. The last few years have been unreal! I am long MA. I see no reason why it won't be in the $90 or $100 range soon...
    8 Mar, 09:32 AM Reply Like
  • psychological-dividends
    , contributor
    Comments (613) | Send Message
     
    I think the payments business has become competitive.
    10 Mar, 01:23 AM Reply Like
  • Cancun 60
    , contributor
    Comments (20) | Send Message
     
    MA was just upgraded today from Hold to Buy so we should see positive movement soon.
    10 Mar, 01:33 PM Reply Like
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