Mastercard vs Visa as partners in finance sector
Hi, this is my first time writing on Medium, but not for start writing itself. Most of my writing is documented in the book, so I don’t have any time to move it to the other platform.
Let’s just dig dive into the topic itself :). Cuz i work on the banking sector, i have knowledge about several payment technology. Handling debit card products at Bank Central Asia (BCA) is my responsibility. It’s quite hard to maintain this mature products, because sometimes you are stuck in getting the business improvement to this products.
Luckily, every bank with debit card products will surely collaborate with third parties like Mastercard, Visa, JCB, UnionPay, etc. Why it happened? Because to use a debit cards outside their origin country, they must use global payment services, and that’s where the role of the third-party played.
And companies like Mastercard and Visa must also improve their business model. The banking sector is their client, and consumers are bank clients. So, it’s like the reciprocal relationship between B2B companies. So, as Mastercard makes innovations, the bank must also enhance its products so that innovation can be offered to the consumers. Let’s take an example when Mastercard announces support for 3DS secure protocol; most banks must enhance their debit card system; if not, when consumers use the card, there will be an error from MasterCard system, and consumers can’t make the transaction in the merchant and others. The same thing also happened to Visa.
Mastercard and Visa are leaders in payment processing, facilitating transactions between merchants, consumers, banks, and credit unions worldwide. Visa often leads in market share and the number of transactions processed globally. It’s widely recognized for its extensive network and is accepted in many places worldwide. Mastercard follows closely, with a significant global presence and acceptance in numerous countries. While it might process fewer transactions than Visa, Mastercard is known for aggressively expanding its reach and technological innovations.
Financially, both companies are robust, with revenues primarily derived from processing fees charged to merchants and financial institutions. They regularly report strong earnings, highlighting the profitability of the electronic payments industry.
Ultimately, the rivalry between Mastercard and Visa pushes both to innovate and expand their services, benefiting consumers, merchants, and the broader financial ecosystem. Their competition is a dynamic and evolving story, reflecting wider trends in global finance, technology, and consumer behavior.
