Santander: Bitcoin Threatens Credit Card Issuers
A securities affiliate of Spanish banking group Banco Santander is predicting bitcoin will have a significant impact on the legacy finance ecosystem should it see wider adoption. The report, published earlier this week, stems from a meeting involving Santander researchers, Santander Investment Securities, Brazilian bitcoin brokerage Mercado Bitcoin and local investors. While short, the publication offers a take on the risks (or opportunities) card issuers, acquirers, exchanges and banks would face in a future should the use of digital currency become more mainstream. Perhaps most at risk,....
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A recently published bank report by Spanish banking giant Banco Santander is foreseeing a future wherein – if bitcoin is adopted in the mainstream – the fundamental business model of credit and debit card companies could be uprooted. A research report [PDF] was published earlier this week by Santander Investment Securities (SIS), a subsidiary owned by the Spanish banking group. The report and its findings came after an August meeting which saw SIS researchers, local investors and most notably, Mercado Bitcoin – the largest bitcoin brokerage in Latin America. The bank-sanctioned report,....
Unreasonably high card fees continue to be borne by retailers and ultimately by consumers. Merchants are paying billions of dollars to have issuers process their debit and credit card transactions. The high transaction fees issuers charge retailers is despite the 42 percent cost reduction card issuers have achieved over the past five years. Another issue....
Prepaid credit cards are not new. However, a prepaid credit card that can be funded with bitcoins is. The BitcoinCard is a credit card that can be funded via BTC. Don't get too excited though, as this card does not let you transmit bitcoin via the card. Despite the website's UK top level domain, the company informed us that the card primarily holds Euros. When we contacted The Bitcoin Company, who are offering this card, a representative told us: "The card works as a normal prepaid credit card. The difference is users can buy it with bitcoins, and fund it with bitcoins." It's not clearly....
Major Banks and credit card companies such as American Express have developed “fraud free” and encrypted chip-enabled cards to cut costs while transferring the burden of fraud compensation onto the merchant. However, many are still unaware that a cheaper and more secure technology already exists. The credit card manufacturers have integrated EMV chips (Europay, MasterCard and Visa) into the credit cards, which create unique payment codes for every transaction. The implementation of the EMV technology disables the duplication of payment credentials to settle other transactions.....
Two Israel-based credit card companies, Max and Isracard, have started working on Bitcoin investment and cashback solutions via a credit card. Financial companies in Israel are increasingly moving into cryptocurrencies like Bitcoin (BTC), with two competing credit card firms working on BTC investment and cashback features.Two Israel-based credit card companies, Max and Isracard, have inked partnerships with crypto-related platforms in order to allow cardholders to purchase Bitcoin, the local news agency Calcalist reported on May 17.Max announced collaboration with the local crypto broker....