Amazon is going to end all the disputes with Visa. This is good news for all the cardholders. It reached a global agreement with the other. This means that U.K. customers can use Visa credit cards to buy from Amazon. eCommerce giant Amazon even dropped the 0.5% surcharge. The charges dropped in Singapore and Australia.
Earlier, Amazon decided to stop accepting Visa in Britain. The Companies talks about the broader resolution.
Amazon spokesperson cleared the air by stating, “We’ve recently reached a global agreement with Visa that allows all customers to continue using their Visa credit cards in our stores.” It will continue to offer a payment experience. It is going to be convenient and offer choice.
The brand put a lot of pressure on Visa to lower the fee. These activities aggravated the frustration among retailers. The cost traced the relation to the tech giant’s market power.
Visa, Mastercard, and American Express are facing intense competition. The fintech flood is challenging them with “buy now, pay later”. The open banking system is affecting card companies.
Visa also notified via email CNBC stating a new collaboration. They are going to come up with new products and technology. It aims to bring innovation to the payment experience.
They are going to focus on enhancing the payment experience. The companies didn’t give many details on the innovation. The swipe fees charged to the merchant every time marginalized now.
Roger De’Ath is the country manager for fintech True Layer. He called the Amazon-Visa spat as the need for a new payment. The cards can retrofit into the checkouts. It created an invisible web of hidden costs. It de-channelizes the payment structure. And affect the cost base of every retailer.
The struck agreement between the two companies is going to bring evolution. The card system needs to pace up with the change in the world.