Pay-by-Bank Is Quietly Gaining Ground. Should Card Network Visa Investors Worry?

Sometimes it takes a while for them to surface. The fact of the matter is, though, competitors will always eventually take aim at a market's leaders, often with a superior solution.That's what's happening within the payments arena right now. After years of chipping away at the dominance of cash and check-based payments, now credit card middlemen like Visa (NYSE: V) and Mastercard (NYSE: MA) are facing unexpected opponents. It's not mobile or digital wallets either; despite their once-strong hype, this option accounted for only about 1% of consumer purchase payments in the United States last year. No, this up-and-coming rival is "pay-by-bank" payments that let a merchant directly withdraw funds from a consumer's bank account, bypassing card payment networks and, subsequently, their higher processing fees.But is this alternative an actual threat to credit and debit card companies?Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool