"Because then you have to add card fees. Why drag Visa along with us into the future like a software virus?""
"Visa's fees are around 12 basis points, which is not particularly high. The 3% to 4% vig that many merchants pay for a credit card transaction is pocketed by banks, not Visa, and a lot of it flows back to consumers in the form of rewards. Meanwhile, Visa has deep lock-in thanks to a five-sided network that offers global reach and a baked-in fraud resolution process."
"One reason, as some who responded to Graham's tweet pointed out, is that Visa's fees are around 12 basis points, which is not particularly high. The 3% to 4% vig that many merchants pay for a credit card transaction is pocketed by banks, not Visa, and a lot of it flows back to consumers in the form of rewards. Meanwhile, Visa has deep lock-in thanks to a five-sided network that offers global reach and a baked-in fraud resolution process."
"Both Visa and Mastercard "are insuring they will be orchestrators and not casualties of stablecoins and agentic commerce." Notably, Visa's crypto guy, Cuy Sheffield, joined the X debate to muse that his company could integrate stablecoins for instant on-chain merchant settlement-a move he implied could obviate the disruptors' advant"
Agents can potentially memorize card numbers, raising questions about why stablecoins are needed for payments. Visa faces arguments that stablecoins avoid card fees, but Visa’s fee structure is relatively low and much of the typical merchant cost is retained by banks rather than Visa. Visa also benefits from strong lock-in created by a five-sided network that provides global reach and a built-in fraud resolution process. Stablecoin disruptors face a challenge because Visa and Mastercard are actively positioning themselves to remain orchestrators. Visa’s crypto leadership has indicated the company could integrate stablecoins to enable instant on-chain merchant settlement, potentially reducing disruptors’ advantages.
Read at Fortune
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