HACKER Q&A
📣 ramesh31

Could a Visa/Mastercard merger ever be approved?


It's hard to imagine, but just following the trend line of modern capitalism to total consolidation, could it be conceivable to ever occur? I think it would mark the logical conclusion of our current course. Although there remains the possibility that they would stay forever seperated federally a la Fannie/Freddy.


  👤 not_your_vase Accepted Answer ✓
Visa has a market share of ~48%, MC ~36%, and the rest if split up between smaller cards. There is a "peaceful equilibrium" on the market (some would call it a cartel, but not me! No sir!). Why would they want to merge? It is virtually impossible at this time for any new player to enter the market (mostly due to regulatory requirements), so they can maximize their profits any way they see it fit.

In case there would be something threatening their dominant position, that would change the equation, of course...