Marc, could you please explain this part more? “As well as his regret that merchants, and even cardholders, never got direct access to the system, he raises concerns about Visa's duopolistic position.”
I’m sorry, I don’t follow what it means to have “access” and “duopolistic” position?
The duopoly is Visa and Mastercard. The standard credit card model they operate is a "four party" model involving consumer, credit card issuer (i.e. bank), network (i.e. Visa/Mastercard), merchant acquirer (traditionally also a bank), merchant. Hock wanted to cut out the banks. Hope that helps?
Yes, thank you. A follow-up question, please, how would cutting out the bank work? Who will settle with the banks? I am trying to better realize Hock’s ideal vision.
Could you please help understand what exactly happened in tackling corporate structure vs market structure?
As always love the way you build up the story and this story on visa is right up there. Thanks a lot Marc
In terms of telco regulation? It's all in Justin's piece: https://justin723.substack.com/p/goodbye-burning-man-hello-brussels. Enjoy!
Marc, could you please explain this part more? “As well as his regret that merchants, and even cardholders, never got direct access to the system, he raises concerns about Visa's duopolistic position.”
I’m sorry, I don’t follow what it means to have “access” and “duopolistic” position?
The duopoly is Visa and Mastercard. The standard credit card model they operate is a "four party" model involving consumer, credit card issuer (i.e. bank), network (i.e. Visa/Mastercard), merchant acquirer (traditionally also a bank), merchant. Hock wanted to cut out the banks. Hope that helps?
Yes, thank you. A follow-up question, please, how would cutting out the bank work? Who will settle with the banks? I am trying to better realize Hock’s ideal vision.
I am trying to make sense of this alongside recent initiative by JPMorgan - https://www.ft.com/content/f6d8d454-2413-4f2b-945d-825d0a68730b. What are your thoughts on JPMorgan trying to do this?
Sorry if these are beginner questions, I am trying to learn from your decades of wisdom.