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Visa and Mastercard: The global payment duopoly (2024)
Explore one of the world's largest and most discussed duopolies, from the origins of the credit card to its combined market value of $850 billion.
The same year that Bank of America launched Visa, in 1966, a consortium of competitors established the Interbank Card Association (ICA), which would ultimately introduce Master Charge shortly after, which saw a name change to Mastercard in 1979. Beyond relying on size (network) and first-mover advantages, Visa and Mastercard have gained immense benefits by having major banks serve as distributors of their cards – a relationship that persists to this day. In summary, Visa and Mastercard's control over payment processing represents a complex interplay of historical development, strategic business practices, technological innovation, and regulatory engagement.
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