This is Why Visa, Mastercard, and American Express Are in Trouble
We take for granted that the global digital payment system has been built on top of credit companies Visa (NYSE: V), Mastercard (NYSE: MA), American Express (NYSE: AXP), and even Discover (NYSE: DFS). When we shop online, at the grocery store, or go to a restaurant, it's just taken for granted that they'll accept credit cards and even take a tap from a mobile phone.
However, when we swipe those cards, credit card transactions cost merchants nearly 3% just to be completed. And even then, it can take days for the money to be deposited into their bank accounts. This is a direct cost that comes out of their bottom line, and most merchants have little choice in the matter. In just the last month, there's been an advance on the Solana (CRYPTO: SOL) blockchain that could almost eliminate most of those credit card fees and replace them with blockchain transactions.
Image source: Getty Images.
Source Fool.com
