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V - Visa


Viking

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  • 4 weeks later...

Visa market cap is higher than all the banks in US. Visa was created by BOA and then all banks joined the platform.

 

At some point all the banks would be interested in coming together to cut into Visa's margin by launching similar entity owned by bunch of banks together. They don't even need to build full fledge competitor but movement in that direction would be good enough to cut into Visa's margins. Something on similar lines has happened against Bloomberg due to its pricing power.

 

For Visa alternative could also come from regulatory forces in Asia which would be growth market in the long run.

 

Rupay card in India has already captured sizeable market in terms of card issued. Something similar could also be there for China/Europe as well.

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  • 1 month later...

https://www.marketwatch.com/story/the-credit-card-giants-viewed-as-the-two-best-companies-in-the-world-face-increasing-skepticism-amid-covid-19-2020-04-15?mod=mw_latestnews

 

I hope for a long term down trend in price for these two come. Would allow more time to add and for the companies to buy back stock. Historically they have been stuck buying back at a very high multiple. Will help these 2 compound even more.

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Visa market cap is higher than all the banks in US. Visa was created by BOA and then all banks joined the platform.

 

At some point all the banks would be interested in coming together to cut into Visa's margin by launching similar entity owned by bunch of banks together. They don't even need to build full fledge competitor but movement in that direction would be good enough to cut into Visa's margins. Something on similar lines has happened against Bloomberg due to its pricing power.

 

For Visa alternative could also come from regulatory forces in Asia which would be growth market in the long run.

 

Rupay card in India has already captured sizeable market in terms of card issued. Something similar could also be there for China/Europe as well.

 

That boat has sailed decades ago. Not going to happen, not from the banks anyway.

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Visa market cap is higher than all the banks in US. Visa was created by BOA and then all banks joined the platform.

 

At some point all the banks would be interested in coming together to cut into Visa's margin by launching similar entity owned by bunch of banks together. They don't even need to build full fledge competitor but movement in that direction would be good enough to cut into Visa's margins. Something on similar lines has happened against Bloomberg due to its pricing power.

 

For Visa alternative could also come from regulatory forces in Asia which would be growth market in the long run.

 

Rupay card in India has already captured sizeable market in terms of card issued. Something similar could also be there for China/Europe as well.

 

Like Zelle?

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  • 3 weeks later...
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The dirty little secret of V and MA is how depended on cross border revenues these entities are. Those cross border revenues are way higher than the 0.2-0.3% charge for a same currency transaction.

 

With travel being impacted more and way into 2021 apparently, these cross border revenues are late to recover, hence he downward revision for 2021 earnings for these entities.

 

I think over the long run, these cross border fees will have to drop.

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The dirty little secret of V and MA is how depended on cross border revenues these entities are. Those cross border revenues are way higher than the 0.2-0.3% charge for a same currency transaction.

 

With travel being impacted more and way into 2021 apparently, these cross border revenues are late to recover, hence he downward revision for 2021 earnings for these entities.

 

I think over the long run, these cross border fees will have to drop.

 

Is that not the convenience fee for the trust of being able to have your customer use a credit card with sensitive information in a foreign place? Who is going to move in to lower the fees and provide the same level of security and convenience? 98.5% of a purchase is worth way more then 0% to a POS holder.

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