News

Visa ban could contribute to strong adoption of Amazon credit cards, says GlobalData

November 19, 2021 (Investorideas.com Newswire) Following the news that, from January 19, 2022, Amazon will not accept payments from UK-issued Visa credit cards;

Chris Dinga, Payments Analyst at GlobalData, a leading data and analytics company, offers his view:

“Visa holds the second largest credit cards market share in the UK, with close to 20 million cards issued in 2021 – behind Mastercard with around 38 million, according to GlobalData. With both looking to increase fees since Brexit took away their 0.3% cap for online cross-border transactions, Amazon’s decision to only ban one of these companies seems odd – until you remember that Mastercard is Amazon’s credit card issuing partner.

“This represents a unique opportunity for both Amazon and Mastercard, as they can take advantage of the situation to promote the Amazon credit card to customers. UK-issued Visa credit card customers will have to either transfer to their debit card or find a new credit card provider if they want to remain an Amazon customer.

“Amazon’s interference will now mean a significant loss of revenue for Visa in the UK. Further, if the issue of interchange fees isn’t addressed, there will be ongoing issue for retailers, which will see their profit margins squeezed. Amazon is a dominant online retailer who is capable of banning Visa credit cards without risking to loss many customers as they are very dependent on Amazon. Smaller retailers may find it harder to do the same if they try to ban Visa credit cards.

“Credit cards are still dominant players for non-cash transactions, but they need to be aware of the growing competition that buy now, pay later (BNPL) providers and alternative payments such as Venmo represent. BNPL is gradually being adopted by retailers as they see higher conversion and growth opportunity by providing it to their customers. High interchange fees could accelerate the adoption of BNPL services by retailers.”

image

For more information

To gain access to our latest press releases: GlobalData Media Centre

Analysts available for comment. Please contact the GlobalData Press Office:

EMEA & Americas: +44 (0)207 832 4399
Asia-Pacific: +91 40 6616 6809
Email: [email protected]

Notes to Editors

  • Quotes provided by Chris Dinga, Payments Analyst at GlobalData
  • Data taken from GlobalData’s Payment Cards Analytics database

About GlobalData

4,000 of the world’s largest companies, including over 70% of FTSE 100 and 60% of Fortune 100 companies, make more timely and better business decisions thanks to GlobalData’s unique data, expert analysis and innovative solutions, all in one platform. GlobalData’s mission is to help our clients decode the future to be more successful and innovative across a range of industries, including the healthcare, consumer, retail, financial, technology and professional services sectors.

More Info:

Investorideas.com Newswire

This news is published on the Investorideas.com Newswire – a global digital news source for investors and business leaders

Disclaimer/Disclosure: Investorideas.com is a digital publisher of third party sourced news, articles and equity research as well as creates original content, including video, interviews and articles. Original content created by investorideas is protected by copyright laws other than syndication rights. Our site does not make recommendations for purchases or sale of stocks, services or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investing involves risk and possible losses. This site is currently compensated for news publication and distribution, social media and marketing, content creation and more. Disclosure is posted for each compensated news release, content published /created if required but otherwise the news was not compensated for and was published for the sole interest of our readers and followers. Contact management and IR of each company directly regarding specific questions.

More disclaimer info: https://www.investorideas.com/About/Disclaimer.asp Learn more about publishing your news release and our other news services on the Investorideas.com newswire https://www.investorideas.com/News-Upload/ and tickertagstocknews.com

Global investors must adhere to regulations of each country. Please read Investorideas.com privacy policy: https://www.investorideas.com/About/Private_Policy.asp

Follow Us on StockTwits

What's your reaction?

Excited
0
Happy
0
In Love
0
Not Sure
0
Silly
0

You may also like

Leave a reply

Your email address will not be published. Required fields are marked *

More in:News