The Case for Card Networks’ Embrace of Interoperability
- Date:April 13, 2023
- Author(s):
- Matthew Gaughan
- Report Details: 16 pages, 3 graphics
- Research Topic(s):
- Tech & Infrastructure
- PAID CONTENT
Overview
Card networks are at a crossroads after decades of dominance. New payment methods and heightened regulatory scrutiny are eroding the competitive advantage Visa, Mastercard, American Express, and Discover have historically enjoyed. This combination of factors increases threats to the interchange model that has been around almost as long as card networks themselves.
As the payments ecosystem decouples, networks should consider something that once might have been unthinkable: They should increase collaboration with fintechs. Services like inventory management or fraud mitigation will become the payment battleground as rails are increasingly commoditized. Under the new dynamic, networks will directly compete with fintechs in some areas while collaborating in others.
Key questions discussed in this report:
- How are card networks’ legacy positions being challenged by fintechs and other upstarts?
- How can card networks embrace interoperability to navigate a tougher environment?
- What are the challenges standing between card networks and greater interoperability with competitors?
Companies Mentioned:
American Express, Discover, Marqeta, Mastercard, Visa, Zeta
Learn More About This Report & Javelin
Related content
Managing Cards as a Service
Companies that provide card-as-a-service (CaaS) offerings are flourishing under a range of descriptions. The overlaps among CaaS providers, banking-as-a-service (BaaS) providers, a...
Surveying the Payments Consultants: The Services Overview
The next wave of payment modernization is rolling in. Technology has emerged to power more advanced payment solutions, including real-time payments rails and open banking. It follo...
FedNow and Technology Vendors: Setting the Foundation for Future Payments
This Javelin Strategy & Research report looks at the Federal Reserve's FedNow service, but from the perspective of choosing the right technology vendor. FedNow offers a foundation ...
Make informed decisions in a digital financial world