New entrants don’t pose a disruptive threat to the incumbent cohort of issuers, credit card networks and acquirers primarily because the incumbents — Visa, Mastercard and First Data — are prepared to compete in all segments of the market.
The incumbents, such as Visa, Mastercard and First Data, are prepared to compete in all segments of the market, writes Subhajit Das, a visiting research fellow at the Christensen Institute from Tata Consultancy Services.