Can EU banks Compete with Visa and MasterCard? | The Future of Payments in 100 Seconds Description video: Visa and MasterCard are expanding their leadership beyond cards. Does that mean this is the right time for EU banks to challenge […]
Can EU banks Compete with Visa and MasterCard? | The Future of Payments in 100 Seconds
Visa and MasterCard are expanding their leadership beyond cards. Does that mean this is the right time for EU banks to challenge the US titans’ supremacy? \n\nWith the launch of a new European Payments Initiative (EPI) to create a unified pan-European payment system by 2022, we looked at what Visa’s and MasterCard’s change of direction may mean for banks and at on which battlefield should banks in Europe choose to compete with them.\n\n\n0:47 – Click here for only the 100 Seconds\n\n\nFor more details and sources :\nhttps://blog.redcompass.com/caneubankscompetewithvisamastercard\n\nSubscribe to our RedCompass Insights: https://offers.redcompass.com/subscribe
Visa and Mastercard may cross the 1 trillion mark
Tech and internet giants were the first to hit $ 1 trillion in value in the stock market. Visa and Mastercard can join them next.
Soaring prices of their shares push credit and debit card makers up the market value scale, where they currently rank 7th and 11th in the benchmark S index&P 500. Their stock quotes have increased by about 50% over the past year.
If the average annual revenues of the aforementioned companies continue to grow, then by 2023 they will be worth more than $ 1 trillion, outstripping market participants such as Facebook and Berkshire Hathaway (assuming that they will also maintain their current pace).
The growth in income of the largest payment systems is due to a shift towards non-cash financial transactions and the popularity of online shopping.
The market value of Visa was $ 449 billion, and Mastercard – $ 324 billion at the close of the last trading.. The Trillionaire Club currently includes Apple, Microsoft and Google.
Amazon.com is at $ 927 billion. It is worth noting that the shares of the e-commerce leader jumped following the earnings report, pushing its market value to $ 1 trillion. Recall that in September 2018, the organization managed to overcome this threshold.
Analysts estimate that around 43% of consumer purchases worldwide, excluding China, are made using digital form of payment, up from 28% in 2010.
Visa has 60% of the credit and debit card market, followed by Mastercard with 30%. American Express covers only 8.5% of the industry.
Despite their importance in finance, Visa and Mastercard belong to the S category&P 500.
An efficient rally for Visa and Mastercard stocks came during the more than 10-year US bull market. However now securities slowed down active growth amid fears about the spread of coronavirus from China.