Comment by dxetech
2 hours ago
Payments are much more complicated than just who your issuer is. As noted in other comments, connecting the customer directly to the aquirer can lose significant functionality. Pre authorization, installments, card on file and other typical services may be offered differently than expected, or not at all. In addition, Mastercard and Visa still write the rules for industry. If at some point advanced Mastercard or Visa 3ds security significantly reduce fraud, and thus rates, consumers may start paying more for issuers that dont support similar technologies. On top of all of this, point of interaction device support may lag. The latest features from Ignenico and such may take a while to implement, or again may not be supported at all for smaller financial companies.
All that being said, it’s great for consumers to have the choice, and hopefully we all benefit from increased competition.
Disclaimer: I work for a Payment Gateway
> installments, card on file and other typical services
These are typically cherished by the issuers and not really wanted/needed by the customer. Card installments in particular are the bane of our society IMHO and straight loans replace them properly.
Many banks in EU already had loan systems integrated to deal with oversized purchases and extraordinary months, so getting it out of the network doesn't remove the service to the customer in most cases.
We're kinda seeing this playing out with alternative payment systems in Asia for instance: they provide way less options, yet get very popular.because people just don't miss the extra stuff.