4 compelling conspiracy theories about Amazon’s beef with Visa
Don your tin foil hat and venture into the horrifying mind of Bezos
1. Amazon plans to crush payment providers
Payment processing firms are deeply integrated into our financial system, but their position could become less secure.
“Many merchants are looking for alternative ways to process customers’ payments, especially in light of the high fees charged by some providers, like Visa and Mastercard,” said James Hickman, the chief commercial officer at Ecospend, a UK fintech. “The decision is significant, however, in that it sets a precedent for many others to follow suit.”
Developments in Open Banking could allow Amazon to bypass card firms and take payments directly from customers. That could save Bezos some cash to splash onego trips to space.
2. This is all because of Brexit
Visa’s charges have risen since the UK left the European Union. The EU had capped cross-border interchange fees at 0.3% for credit cards, but those rules have disappeared since Brexit.
In March,the Financial Times repotedthat Visa planned to increase its interchange fees to 1.5%.
Martin Lewis, a financial journalist and founder ofMoneySavingExpert.com, said Visa’s price-hike triggered Amazon’s ban.
Amazon hasdenied that Brexitwas the specific cause of the dispute. Indeed, the company has also introduced new charges for Visa credit cards in Australia and Singapore. However, the increased costs in the UK could have deepened the feud.
3. Bezos is in bed with Mastercard
Mastercardhas also increased its UK-EU interchange fees, but nonetheless escaped the credit card ban.
While Amazon currently uses MasterCard for its own credit card in the UK, the company says this relationship has nothing to do with the Visa feud.
In the wake of the announcement, however,reports emergedthat Amazon could shift its co-brand credit card from Visa to Mastercard. Online searches for Mastercard, meanwhile,increased by 1,300%.
Perhaps Mohammed bin Salman isn’t the only person withJeff Bezos’ dick pics.
4. It’s just a negotiation tactic
Amazon’s move could be an attempt to negotiate newer fees.
The move has alreadytaken a chunk out of Visa’s stock price. The payments firm may want to negotiate before Amazon’s enormous market share causes further damage. The e-commerce giant’s January 22 deadline gives them some time to make a deal.
The outcome could be lower fees or more users for Amazon’s own payment system. Visa and its customers may suffer, but Bezos’ world domination plans could go from strength to strength. Congratulations, Jeff.
Story byThomas Macaulay
Thomas is a senior reporter at TNW. He covers European tech, with a focus on AI, cybersecurity, and government policy.Thomas is a senior reporter at TNW. He covers European tech, with a focus on AI, cybersecurity, and government policy.
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