Amazon vs Visa Beef Explained (UK) | Amazon, Visa, Jeff Bezos, credit card, debit card, Brexit, EU

Amazon. A corporation with the fifth biggest market value in the world. Visa. A business that allows customers to make online transactions in over 200 countries. Both companies have revolutionised technology on a global scale. So what would be a more juicy beef than between these two titans of industry? And in the UK of all places? But why? Well, Amazon made the first move by publicly declaring that their UK branch would stop issuing VISA credit cards due to the high costs. But would still accept debit cards. Amazon’s main complaints is that as time passes, Visa’s prices should be falling. A theoretical reason for this is that Visa should discover new technologies and or methods that will lower their costs of production, hence taking advantage of economies of scale. Economies of scale is the fall in average costs in the long run as a business expands to a larger size which Visa is capable of doing. With the lack of lower costs, Amazon reason that there should be a rise in quality from the supposed high prices which they claim to have not seen. It appears Amazon is thinking about the greater community, since it further points out that the higher prices can increase costs for businesses, leading to cost-push inflationary pressures on prices for consumers. Amazon was also considering dropping Visa’s American branch as a credit card partner.

Sources:
Amazon Market Capitalization:
https://www.statista.com/statistics/263264/top-companies-in-the-world-by-market-capitalization/
Finty How does Visa make money article:
https://finty.com/us/business-models/visa/
BBC Amazon Visa Article:
https://www.bbc.co.uk/news/business-59306200
Amazon UK Market Share article:
https://www.uktech.news/need-to-know-2/amazon-dominates-30-of-uk-ecommerce-market-in-2019-20191213
90% UK shopper Amazon article:
https://www.theguardian.com/business/2019/mar/07/almost-90-of-uk-shoppers-use-amazon-research-reveals
Visa Market Share Stats:
https://www.statista.com/statistics/1116580/payment-card-scheme-market-share-in-europe-by-country/#:~:text=Visa%20was%20the%20largest%20card,80%20percent%20in%20both%20countries.
Daily Express Amazon article:
https://www.express.co.uk/finance/city/1531983/amazon-uk-shoppers-visa-credit-card-ban
EU Credit Card Price Cap:
https://ec.europa.eu/commission/presscorner/detail/hr/IP_15_4585
UK Amazon users can continue using credit cards:
https://www.theguardian.com/technology/2022/jan/17/amazon-and-visa-end-game-of-corporate-chicken-over-uk-credit-cards

#Amazon
#Bezos
#Visa