Author Topic: V - Visa  (Read 31493 times)

vinod1

  • Lifetime Member
  • Hero Member
  • *****
  • Posts: 1263
    • My Blog
Re: V - Visa
« Reply #70 on: October 28, 2018, 04:26:17 PM »
I was wondering if people who follow visa or MA think alternative payments like Alipay is a significant threat ?  it seems like with Alipay you simply connect your bank account to  it to make payments, bypassing the credit card networks all together... 
i'm noticing alipay & wechat pay more and more now, even in vancouver. 
Gary

Yes it is a threat long term that needs to be watched, just like you do for any long term risks for any company, even Berkshire.

That said, the only new company that has succeeded in the past 40 years in payments (payment rails, not something that rides on top of the existing networks like Square) in the US and the rest of the Developed world is Paypal. That is because it solved a particular pain point in online payments.

For consumers in US or in any of the major developed economies, payment networks are well developed and paying using credit cards is not a pain point. Paying using a smartphone is not anymore convenient than paying with a credit card.

That is why Apple pay is such a flop. Who knows how things turn out in future? But, just like you noticed, we would have some indication of any change in competitive dynamics and it would not be overnight.

Right now, I do not see a threat on the immediate horizon.

Vinod

I have been seeing bus and billboard ads in the past month for a mastercard that is linked to your Venmo account.  Swipe like a credit card at any merchant who takes V or MC but it's linked to your bank account through venmo.  I won't say it's a game changer, but the landscape on these payment systems changes like the sand dunes and it's hard to predict with certainty what it will look like in a few years.

One new company in the payments systems that succeeded in the last 40 years, must be really slow moving sand dunes :)

Vinod
The fundamental algorithm of life: repeat what works. –Charlie Munger


gary17

  • Hero Member
  • *****
  • Posts: 1151
Re: V - Visa
« Reply #71 on: October 28, 2018, 08:39:26 PM »
I think Apple Pay could have potential to be the next Wepay or Ali pay in the US as people seems to have more 'trust' towards Apple...  a lot of payments via app (for example hailing a Uber) can be apple pay.   what's stopping apple pay from linking directly to someone's debit card and bypass the visa network altogether ?

facebook could be like wepay but they have some 'trust' issue at the moment

Gary

SlowAppreciation

  • Sr. Member
  • ****
  • Posts: 410
    • Slow Appreciation
Re: V - Visa
« Reply #72 on: October 29, 2018, 06:03:38 AM »
I think Apple Pay could have potential to be the next Wepay or Ali pay in the US as people seems to have more 'trust' towards Apple...  a lot of payments via app (for example hailing a Uber) can be apple pay.   what's stopping apple pay from linking directly to someone's debit card and bypass the visa network altogether ?

facebook could be like wepay but they have some 'trust' issue at the moment

Gary

  • Building relationships—one by one—with 14,000 financial institutions in 150+ countries.
  • Building relationships with regulators/govts in each of those countries.
  • Compliance
  • Building technology/infrastructure with 99.99999% uptime and then integrate that with each of the financial institutions
  • establishing rules that all parties involved in transactions can agree to for things like returns, disputed transactions, etc
  • have better fraud detection than the company that's been doing it for 40 years

gary17

  • Hero Member
  • *****
  • Posts: 1151
Re: V - Visa
« Reply #73 on: October 29, 2018, 10:24:10 AM »
I think Apple Pay could have potential to be the next Wepay or Ali pay in the US as people seems to have more 'trust' towards Apple...  a lot of payments via app (for example hailing a Uber) can be apple pay.   what's stopping apple pay from linking directly to someone's debit card and bypass the visa network altogether ?

facebook could be like wepay but they have some 'trust' issue at the moment

Gary

  • Building relationships—one by one—with 14,000 financial institutions in 150+ countries.
  • Building relationships with regulators/govts in each of those countries.
  • Compliance
  • Building technology/infrastructure with 99.99999% uptime and then integrate that with each of the financial institutions
  • establishing rules that all parties involved in transactions can agree to for things like returns, disputed transactions, etc
  • have better fraud detection than the company that's been doing it for 40 years

I don't dispute the above and agree V and MA have tremendous value- but with all these 'facts' why is it that Alipay and Wepay have taken off... they don't have the relationships, the compliance and fraud protection issues to deal with?
Gary

Liberty

  • Lifetime Member
  • Hero Member
  • *****
  • Posts: 10434
  • twitter.com/libertyRPF
    • twitter.com/libertyRPF
Re: V - Visa
« Reply #74 on: October 29, 2018, 10:31:56 AM »
but with all these 'facts' why is it that Alipay and Wepay have taken off... they don't have the relationships, the compliance and fraud protection issues to deal with?
Gary

Because China basically started from nothing and was fairly hostile to foreign companies in this industry, while the rest of the world already has existing payment rails that work well.
"Most haystacks don't even have a needle." |  I'm on Twitter  | Interesting podcast on aging research

Pauly

  • Jr. Member
  • **
  • Posts: 74
Re: V - Visa
« Reply #75 on: October 29, 2018, 01:10:56 PM »
but with all these 'facts' why is it that Alipay and Wepay have taken off... they don't have the relationships, the compliance and fraud protection issues to deal with?
Gary

Because China basically started from nothing and was fairly hostile to foreign companies in this industry, while the rest of the world already has existing payment rails that work well.

^This x1000. If you've seen Alipay/Wepay in Vancouver I would bet it's only being used by people with strong links to China. I can't see anyone else trusting their financial information to firms like Alibaba and Tencent. What would be the upside?