Visa and Mastercard's Payment Empire: Challenges to the Duopoly

Visa and Mastercard control approximately 90% of global payment processing (excluding China), boasting a combined market value of roughly $850 billion. This article explores the rise of these payment giants, from the early days of credit cards in the 1950s to Visa and Mastercard's dominance through first-mover advantages and restrictive contracts. However, challenges are emerging, from major companies like Amazon negotiating lower fees to the rise of national payment processors such as RuPay in India. The article analyzes their network effects, scalability, and distribution advantages, highlighting threats posed by competitors like RuPay and fintech companies. Ultimately, the article suggests that Visa and Mastercard's future hinges on their ability to adapt to new technologies, navigate regulatory shifts, and respond to evolving market dynamics.