A question that has been around for ages, and most of the time it does go unanswered. Let me start off today’ article with a bit of information about Visa and MasterCard; they are the two leading credit card companies in the world. Now there are millions of people using both Visa and MasterCard around the world, so how do we really determine which service is the best?
Who is The Best?
First we need to remember that, both Visa and MasterCard do not actually issue cards themselves; they simply methods of payment. They rely on banks and financial institutions to issue credit cards that utilize these payment methods.
This means, any interest rate, annual fees, rewards and any other charges are issued by your bank or financial institution; Visa and MasterCard have nothing to do with it.
Visa and MasterCard do however charging the retailer for using their payment method.
It all comes down to which type of payment is most accepted; seeing as pretty much everywhere accepts both types of payment, how would we decide in the end?
I came up with one way to look at which card is better or at least most used; this is through who has the most market share.
Well according the a report in 2008 by Neilson, they reported that Visa Inc (Visa Canada’s parent company) held a 38.3% market share of credit cards. They did however have a 60.7% market share in debt cards in the US (no current Canadian stats). MasterCard on the other hand has no specific data out. Our research shows that MasterCard and Visa have a combined market share of about 74% (estimated). If we take the previous market share of 38.3% from Visa and subtract it from the combined market share of 74%. We have MasterCard controlling 38.7% of the market in credit cards.
Now it still would be a personal opinion on which is better, Visa or MasterCard, but chances are, in your lifetime you will own both a Visa and a MasterCard and it will then boil down to what card offers the most.
Which Canadian Banks Provide Visa and MasterCards?
As you can tell in the chart above. Visa dominates the Canadian banking arena. I wonder how upset MasterCard is? Visa literally doubles MasterCard in this arena. Time to smarten up MasterCard, go and offer some sweeten up deals. Citizens Bank of Canada is relatively small compared to all the other names. I’m sure they’d love to cut some costs in there credit card department to go after the big banks (or other online banks).
Personally, I am leaning over to MasterCard’ side only because Tim Horton’ does not accept any other kind of credit card payment. I do not walk around with much cash so having a credit card which can be used at Tim Horton’ to me is the best.
Well this is only one man’s opinion, what’s yours?
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