Originally Posted by
fifty_two
i wouldnt be so excited about it , based on first feedbacks i read , but as you mentionned its good they choose visa instead of MC or amex
plus its not really direct competition for amex . It would be good if they decide to compete for FB customers , by signing a deal with AFKL but we know it wont happen soon unless a new player come and break the statusquo of this oligopoly
On a financial level Amex enjoys hugely inflated discount rates compared to Visa/MC in Europe. What fintech in Europe is going to bring strong revenue to AF? In France there is Qonto but it’s way too small.
Which leaves the big and tired French banks. I don’t think BNP Paribas or Soc Gen are going to be willing to invest in a competitive product because their discount rates are so minuscule. Their revenue model would have to be fee-based and consumers aren’t going to pay 1000€ for top-tier services.
One of the reasons why US cards are so aggressive with bonuses, miles, etc is precisely that their discount rates are ridiculously high (and they have free reign to mess around with customer terms and conditions, charge usurious rates etc etc) all of which is not possible in Europe.
Just my two cents.