Visa and Mastercard are bridging card and digital wallet networks by forming partnerships, enabling transactions across networks. Meanwhile, JP Morgan Chase has risen in global issuer ranking through acquisitions. Western global banks are divesting low-profit personal businesses in emerging markets, creating opportunities for local banks to grow. Furthermore, incumbents need fintech partnerships screened by market research, to drive digital transformation to compete with digital challengers.
This report comes in PPT.
To drive card transaction shares, Visa and Mastercard have been actively building digital wallet partnerships, enabling card users to transact on wallet networks.
Meanwhile, they have been promoting card issuing capabilities to digital wallet operators, enabling their users to transact on card point-of-sale (POS) terminals.
JP Morgan Chase has risen in the global card issuer rankings, strengthening its top position in the US by acquisitions.
Meanwhile, Agricultural Bank of China's ranking has declined due to competition from digital payment platforms like Ant Group's MyBank which cater to small and micro businesses underserved by incumbent banks.
With declining profit margins in retail banking businesses, international banks including Citibank have been divesting their personal banking business in overseas emerging markets.
This allows those international banks to focus on higher-profit-margin businesses such as wealth banking in key financial centres including Singapore, business and corporate banking.
Incumbent payment firms and banks face strong headwinds in existing ways of working and experience challenges in in-house innovations to catch up with digital challengers.
Instead of developing everything in-house, many incumbents including Visa and HSBC have identified key areas of embedded finance partnerships to outsource to fintechs, or acquire them.
This is the aggregation of Financial Cards and Payments, Mobile Payments, Transactions, and Consumer Lending.
See all of our definitionsIf you purchase a report that is updated in the next 60 days, we will send you the new edition and data extraction Free!