Visa is considered a strong player providing plastic to consumers around the world. Who cannot deal with plastic. But within the overall mix ponder this Bear Case Consideration. Debit card use is growing rapidly. Visa activity is just under 60% related to debit cards. Debit cards are usually associated with smaller ticket sizes. They are lower margin and small contribution. What you really want is a consumer spending hundreds of dollars on dinner, hotels, flights, show tickets and jewelry for wife and mistress and putting it on his or her card.
If Visa cannot figure out how to increase margin on Debit Card they will become caught in a low margin high volume trap which is hard to extricate from.
Basically they need to “Bend it like Beckham”
George Gutowski writes from a caveat emptor perspective.