Payments Processing: The New Utility

Visa dominates the debit transaction market, controlling 60% of it, leading to criticism about its partnerships that limit competition, notably against large players like PayPal and Apple. Despite claims of boxing out startups, the challenge lies in maintaining growth and market share through strategic partnerships. Innovations in payments processing are limited, with significant focus on reducing prices, which Visa has already achieved. The evolution of payments processing mirrors the progression of utilities, suggesting that debit and credit card transactions may warrant similar regulatory treatment as essential services due to their ubiquity and critical role in the market.