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Visa Inc (V) In Mobile Payments Is Like Switzerland In World War 2

Visa Inc (NYSE:V) is taking the role of a watcher over the industry as it doesn’t plan to innovate much, rather looks for  new projects to get involved with. It’s not clear if this strategy will secure the company from the competition that will emerge on the market. So, Bloomberg presented some thoughts on how eBay Inc (NASDAQ:EBAY)’s upcoming spin-off might impact the credit card business.

Visa Inc (NYSE:V)

Sometimes it’s actually wiser not to try and mend something that is not actually broken, so a more passive strategy for the time being might be more productive than presumed.

“It’s not so much that Visa needs to be inventing the bright and shiny new object, it’s that they need to be a part of whatever the bright and shiny new object is. So, yes, the Apple Pay is a great example of that,” added Elizabeth Dexheimer.

So, Visa Inc (NYSE:V)’s not looking to get services to compete with eBay Inc (NASDAQ:EBAY)’s Braintress, but hoping to eschew a potential fight through consolidation of current relations. However, this doesn’t mean that Charles W. Scharf is just going to sit and do nothing all the way through his tenure. In fact, his company has been involved with several improvements of its existing technologies.

“Visa is trying to act much more like a technology company than it has before and Charlie Scharf, the CEO, his strategy is really focused on opening up the network to companies that Visa hasn’t historically worked much with,” said Elizabeth Dexheimer.

Most probably Visa Inc (NYSE:V) will have to do much more than minor updates and key contracts to keep the company’s share price rising constantly, but this doesn’t mean that the threat from eBay Inc (NASDAQ:EBAY) will end up having vile consequences, especially considering the fact that the two don’t compete directly. The relationship seems to be complementary instead of antagonistic. Thus, until some significant changes occur we’re left just to wonder what will these companies do with the current $211.7 price per share for the credit card maker and $54.4 for the e-commerce giant.

Disclosure: none

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