Regional Powers like Brazil, India, China and the EU are moving away from Swift which is under US majority control , and/or the US owned Mastercard/Visa system ( #E):
“The rise of “sovereign” systems, especially in Europe, a big source of Visa’s and Mastercard’s international business, could erode their enviable operating margins of over 50%. In their latest annual reports, both companies brought up “preferential” treatment of domestic payments systems as a risk to business. That may be one reason why investors have lately been lukewarm about the two giants, despite healthy earnings. After a sustained climb starting in 2023, their share prices have declined in the past year (see chart).”
Swift isnt visa/mastercard its something else. Its based in europe so despite being dominated by american banks the eu would be ok using it, but china etc. do not want to rely on it and are making an alternative.
The eu is planning alternatives to visa/mc, not swift.
Regional Powers like Brazil, India, China and the EU are moving away from Swift which is under US majority control , and/or the US owned Mastercard/Visa system ( #E):
“The rise of “sovereign” systems, especially in Europe, a big source of Visa’s and Mastercard’s international business, could erode their enviable operating margins of over 50%. In their latest annual reports, both companies brought up “preferential” treatment of domestic payments systems as a risk to business. That may be one reason why investors have lately been lukewarm about the two giants, despite healthy earnings. After a sustained climb starting in 2023, their share prices have declined in the past year (see chart).”
#edit see comment
Swift isnt visa/mastercard its something else. Its based in europe so despite being dominated by american banks the eu would be ok using it, but china etc. do not want to rely on it and are making an alternative.
The eu is planning alternatives to visa/mc, not swift.
Yes, I should have put it down more nuanced. I’ll update it.
Indeed we already have a “swift” system: SEPA and T2 for EUR-EUR settlements.