Why do most banks not make their own payment systems instead of relying on Visa and Mastercard like American Express does? Chase, BOA, and Citigroup are all much larger than AE.

Question

Why do most banks not make their own payment systems instead of relying on Visa and Mastercard like American Express does? Chase, BOA, and Citigroup are all much larger than AE.

In: 2

Answer 1

Well to be technical, what is today known as Visa was initially a product founded by Bank of America and then later spun off into its own thing.

But these days, one huge issue is that achieving global adoption for a new payments network would be a huge challenge.