Visa Follow-Up and Today’s Payments Ecosystem (with Gaurav Ahuja)
ACQ2 by Acquired
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The Power of Network Effects in Industry Growth
The narrative of Diners Club highlights the emergence of a network effect in the restaurant industry in New York. The initial 200 users of Diners Club, frequenting various restaurants, prompted other high-end restaurants to join the network to access these users. This led to a virtuous cycle, and in a decade, Diners Club had a million users. This power user dynamic is evident in various industries, where a small percentage of users drive the majority of expenses, such as in mobile gaming and healthcare.
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