Pay-'Frenemy': Visa (V) to Lade More Fees on 'Staged' Digital Wallet Providers (EBAY) (V) (MA)
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Just because you pay loads of fees already doesn't mean you can't afford a little extra.
That's the mindset from credit giants Visa (NYSE: V) and MasterCard (NYSE: MA) have been taking lately for eBay's (Nasdaq: EBAY) PayPal unit. After MasterCard announced plans earlier this year to raise fees on digital wallet operators this year, Visa chief Charlie Scharf suggested the same thing during Barclays Emerging Payments Forum yesterday, notes Reuters.
When asked whether Visa would impose a digital wallet fee, Scharf responded that he thinks it is "totally appropriate to do that."
PayPal isn't a payment network, but uses a customers bank, credit, or debit card information to send payments to merchant. In doing that, PayPal is saddled with a mountain of fees from the likes of Visa, MasterCard, and American Express (NYSE: AXP) already.
The fees will most likely deal with "staged" digital wallets, which share less information with card issuers and networks. This can cause problems with customer service as well as reward programs.
"Staged" digital wallet issuers include PayPal, Google (Nasdaq: GOOG) Wallet, Square, Intuit's (Nasdaq: INTU) GoPayment, and others.
Visa' Scharf commented, "Allowing data to be passed through to our issuers and then not allowing data to be passed through to our issuers makes us re-think about our pricing and our rules."
Shares of eBay are up Thursday, while Visa and MasterCard are lower on the session.
That's the mindset from credit giants Visa (NYSE: V) and MasterCard (NYSE: MA) have been taking lately for eBay's (Nasdaq: EBAY) PayPal unit. After MasterCard announced plans earlier this year to raise fees on digital wallet operators this year, Visa chief Charlie Scharf suggested the same thing during Barclays Emerging Payments Forum yesterday, notes Reuters.
When asked whether Visa would impose a digital wallet fee, Scharf responded that he thinks it is "totally appropriate to do that."
PayPal isn't a payment network, but uses a customers bank, credit, or debit card information to send payments to merchant. In doing that, PayPal is saddled with a mountain of fees from the likes of Visa, MasterCard, and American Express (NYSE: AXP) already.
The fees will most likely deal with "staged" digital wallets, which share less information with card issuers and networks. This can cause problems with customer service as well as reward programs.
"Staged" digital wallet issuers include PayPal, Google (Nasdaq: GOOG) Wallet, Square, Intuit's (Nasdaq: INTU) GoPayment, and others.
Visa' Scharf commented, "Allowing data to be passed through to our issuers and then not allowing data to be passed through to our issuers makes us re-think about our pricing and our rules."
Shares of eBay are up Thursday, while Visa and MasterCard are lower on the session.
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