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What are/was the effects of GDPR in EU? Also, did it lead to a huge increase in the spendings for MasterCard?
by obiwanpallav1 5y ago
What are/was the effects of GDPR in EU? Also, did it lead to a huge increase in the spendings for MasterCard?
- mtmail 5y agoI'd imagine a bigger loss for MasterCard was the EU capping their interchange fees to 0.3% with a regulation in 2015. "At present, credit card interchange fees in the UK are typically around 0.85% per transaction" (https://www.theguardian.com/money/2015/jul/27/cap-on-card-fees-retailers https://www.theguardian.com/money/2015/jul/27/cap-on-card-fe...). After Brexit MasterCard will increase it to 1.5% (https://www.theguardian.com/money/2021/jan/25/mastercard-to-raise-fees-to-eu-firms-by-500-percent-for-online-sales-to-uk-shoppers https://www.theguardian.com/money/2021/jan/25/mastercard-to-...) Loosing out on 0.55% fee on every transaction is significant at MasterCard's scale.
- IshKebab 5y agoI agree that will have a bigger effect, and boo Brexit. But it's actually only transactions on EU shops by UK cards that face higher fees, which is a really small percentage of purchases. Definitely not every transaction. I'm sure they'll raise the other fees later though. Probably just dipping their toes.
- toomuchtodo 5y agoEven more reason to accelerate instant payment system rollouts to avoid private payment systems that charge interchange fees.
- IshKebab 5y agoWhat instant payment systems? Are there actually viable competitors to Visa/MasterCard?
- toomuchtodo 5y agohttps://www.npci.org.in/what-we-do/upi/product-overview https://www.npci.org.in/what-we-do/upi/product-overview