UK seeks alternative to Visa and Mastercard – Analysis

The British government has recommended that the banking sector reduce its dependence on US payment networks such as Visa and Mastercard. In a government-commissioned review called the “Future of Payments Review,” it was suggested that the UK should develop a digital alternative to challenge the dominance of these American credit cards. The review acknowledged concerns about the high costs associated with card schemes, and the lack of choice or digital alternatives available to merchants and services. This report echoes long-standing grievances across the EU regarding the heavy reliance on American services for card payments. Despite previous attempts to switch to domestic alternatives, little progress has been made thus far.

The report encourages the British payment sector to increase the use of open banking technology as an alternative to traditional money transfer methods that require customers to enter sort codes and account numbers. It also suggested the development of a viable digital alternative to the existing card schemes, which, in the opinion of the report, would improve the market. Joe Garner, who led the review, highlighted the concerns raised by merchants and retailers who feel “trapped” within the current system. Offering retailers the option to charge without relying on a card network would create a healthier market, especially considering the declining use of cash.

Analysis:
This news article provides an overview of a government-commissioned review on the future of payments in the UK. The sources of information are not explicitly mentioned, which raises questions about the credibility of the claims made. The article cites a report called the “Future of Payments Review,” but its authors and their qualifications are not provided. Additionally, the source of the news article itself, RT, has been accused of being a propaganda outlet for the Russian government, which questions its credibility.

The presentation of facts in the article is straightforward, providing the main points and recommendations made in the review. However, there is a lack of concrete data or expert opinions to substantiate the claims made. The article mentions the long-standing complaints across the EU about reliance on American services for card payments, but it does not offer any specific examples or statistics to illustrate the scale of this issue.

There is a potential bias in the article as it suggests that the UK should develop a digital alternative to challenge the dominance of US credit cards. The article does not explore potential benefits or drawbacks of such a development, and it does not provide a balanced perspective on the issue. This could contribute to a limited understanding of the implications and feasibility of introducing a digital alternative.

In the context of the political landscape and prevalence of fake news, it is important for readers to critically evaluate the credibility of the sources and the information presented in this article. Without additional sources or expert analysis, it is difficult to determine the reliability of the claims made. The lack of concrete data also limits the readers’ ability to form an informed opinion on the issue. It is crucial to seek multiple perspectives and consult reliable sources to gain a nuanced understanding of the topic.

Source: RT news: UK seeks alternative to Visa and Mastercard