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Likely - but here's the thing; this could very likely be permanent if they see no noticeable drop in their revenue / profits; or not enough to offset the money
by _s 10y ago
Likely - but here's the thing; this could very likely be permanent if they see no noticeable drop in their revenue / profits; or not enough to offset the money saved by refusing to accept Visa.
More to the point - a lot of banks offer both Visa & Mastercard, so for most folks it'd be just a case of swapping cards if they don't already have one (if they feel inconvenienced by the lack of Visa payments).
- hellofunk 10y agoI think you vastly overestimate the need for Walmart in a person's life if you think they will actually switch their credit card to Mastercard with their bank just so they can shop there.
- spdustin 10y agoI think you vastly underestimate both the buying power and brand loyalty shown by people who choose to shop at any retailer, especially discount ones like Walmart.
- skylan_q 10y agoThat's only some of the consumers. Even if there's 5% less business/revenue to Walmart as a result of this decision, that's a huge hit.
- rizwank 10y agoYeah. But that's not the endgame. Cashiers will almost assuredly offer a Walmart branded MasterCard or Amex if they were trying to buy with visa. Bingo- Walmart has both eliminated visas Costs and developed a new revenue stream. And I imagine their quants know how many of their visa customers have alternate credit cards or debit capabilities.
- bsilvereagle 10y agoWhile this article is about Canada, in many Midwest US communities Wal-Mart is the store. Mom and pop grocery stores shutdown years ago after not being able to compete. The nearest Kohl's/JCPenny's could be an hour drive away. Everything you buy on a weekly basis comes from Wal-Mart. A policy change like this in America would drastically affect many Midwesterners lives.
- ams6110 10y agoVery much so. I will often drive past the local Walmart at well after midnight and see a nearly full parking lot. The number of people who shop there is huge, and they do it because they are living on narrow margins and saving $0.50 on a jar of peanut butter is something that matters to them.
- aianus 10y agoAs noted elsewhere in the thread, everyone in Canada already has an Interac debit card (if they have a bank account) which is still being accepted.