Are the likes of Visa and MasterCard doomed?
When the internet first boomed in popularity, there were a number of industries and activities that analysts and others speculated would soon be “disintermediated”: estate agents (hopefully), traditional media and, of course, many “bricks-and-mortar” retailers.
The reality, so far, has been mixed. While Comet, Woolworths and other long-established high street retailers have been swept into the dustbin of history, estate agents have proved more resilient. But in many respects, the bracing effects of the internet have only just begun to blow through the global economy, and one area that it is poised to shake to its roots is the traditional payments system.
It is not simply about the technologies, such as digital wallets or near field communication (NFC) payments, with which the consumers of tomorrow may spend their money. Indeed, digital wallets, such as Mondex, have been trialled repeatedly over the past two decades and generally been found wanting by consumers who have struggled to see the point of them when there’s a cash machine on every corner.
