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Walmart’s FedNow initiative could weaken Visa, MasterCard moat, says Mizuho

Walmart’s FedNow initiative could weaken Visa, MasterCard moat, says Mizuho

Walmart (WMT) customers will have the option to pay directly from their bank accounts when shopping online beginning in 2025, according to a report from Bloomberg, which adds that the instant transfer transactions would compete with Visa (V) and MasterCard (MA) networks, Mizuho tells investors in a research note. In addition to risk to traditional debit card spending, the firm sees medium-term risks to push-debit services like Visa Direct and Mastercard Send. Mizuho maintains an Outperform rating on MasterCard and a Neutral rating on Visa.

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