8 Ways Visa and Mastercard Are Reshaping Their Markets
July 22, 2016 9:47 AM
Visa and Mastercard both face the prospect of becoming "dumb pipes" as other companies innovate on top of their networks. To combat this trend, both are taking steps to be major players in the digital economy.
Visa Makes Peace with PayPal
The card networks have been at war with PayPal since the alternative payment company launched in 1998, and Visa finally seems to have found a way to coexist with its digital rival in a deal that required heavy concessions from PayPal on how it deals with card transactions.
Chris Ratcliffe/Bloomberg
Mastercard Bets Big on Vocalink
Mastercard is also making peace with a digital upstart, the U.K.'s VocaLink, which is behind the Zapp online payment tool. The $920 million investment gives Mastercard access to technologies that can help it compete against Visa in areas that are still new to both networks.
Simon Dawson/Bloomberg
Visa Reunites with Visa Europe
Visa's reunification with Visa Europe gives the card network a chance to reenter hubs of fintech innovation such as London while also exporting the tech resources it has developed in the U.S.
DANIEL ACKER/BLOOMBERG NEWS
Mastercard's Master Plan for Asia
Mastercard, meanwhile, has its sights set on business opportunities in Asia . Its strategy of offering customized services to merchants and issuers pairs with a regional focus on countries such as China, Myanmar and India.
Dado Galdieri/Bloomberg
Visa's Olympic Event
Visa has spent years using its sponsorship of the Olympic Games as an opportunity to test and promote new technology, and Rio is no exception. The card network is distributing payment-enabled NFC rings to athletes to let them make purchases without a wallet or phone.
GENTL AND HYERS
Masterpass Makeover
Mastercard is reinventing its Masterpass platform to make it a friendlier option for banks and merchants. The new version ties directly to banks' digital wallets and enables contactless payments on Android handsets.
Andrew Harrer/Bloomberg
Redefining EMV
Starting with Visa, the four major U.S. card networks have all developed technology that can speed up the process of making an EMV payment at the point of sale. The goal is to counter the anti-EMV sentiment that comes from consumers and merchants who don't have the patience for the new process.
Pau Barrena/Bloomberg
Selfie Security
Mastercard's new approach to 3D Secure taps into a habit consumers love: Taking their own pictures. The new option, enabled at the discretion of Mastercard issuers, allows selfies to improve security at certain merchant sites.
