Are Visa and MasterCard About to Lose Their Competitive Position?

By Matt Koppenheffer and David Hanson – Apr 18, 2014 at 7:09AM

NYSE: WFC

Wells Fargo

Market Cap

$216B

Today's Change

(-0.56%) -$0.34

Current Price

$60.60

Price as of April 24, 2024, 4:00 p.m. ET

Visa and MasterCard have enormous moats in the payments space with their vast and ubiquitous networks. But could this deal signal a coming change to that dominance?

The vast payment networks that Visa (V 0.33%) and MasterCard (MA -0.07%) hold in the payments space are unrivaled, and constitute a massive moat between them and other smaller players. But, could this deal with JPMorgan (JPM 0.49%) represent a shift for these payment network giants away from the ultimate dominance they have been enjoying?

In this video, Motley Fool financial analysts Matt Koppenheffer and David Hanson take a look at one way JPMorgan is bending the rules a bit on Visa, and discuss whether other banks could follow suit, and if this potentially represents a fundamental shift to the business of Visa and MasterCard.

David Hanson owns shares of JPMorgan Chase. Matt Koppenheffer owns shares of JPMorgan Chase. The Motley Fool recommends MasterCard, Visa, and Wells Fargo. The Motley Fool owns shares of JPMorgan Chase, MasterCard, Visa, and Wells Fargo. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.