How is this different from gift cards, company specific gift cards, like when I get $20 Amazon card, that I can use it only in Amazon? Today, Visa allows you to send money from your venmo account to anyone who doesn’t have venmo account. That role of Visa, MA is not going to change.
The MA & V margins are great. So far many attempts were made to eat into that margin, and eventually they all work with MA & V because their network is so strong. So any selloff today on this news is a buying opportunity in my opinion.
If anything, I think Western Union is the one whose business model is under long-term attack from these stablecoins. Especially when trump wants to charge 5% to send your money from your US account to Mexico or India over and above what WU charges.