Nice breakdown and appreciate the long form analysis; all excellent. There are definitely some interesting sub-topics worth exploring like coopetition (e.g. when is it beneficial to the end user, issuer and network).
I want to offer some views:
1) I was working in Visa AP product and I remember discussing Curve with colleagues. I don't believe Visa ever supported Curve or a product like Curve - it was all in Mastercard's camp. It was seen as fronting the transaction and therefore against the spirit of the rules.
Because the unit economics, business model NEVER made sense (and it played out to be the case), we were dismissive of such products and put it into the bucket of it will fail soon enough.
2) Nium launched their Amaze card (also on MC) with this feature in Singapore. Like Curve, I believe the USP wasn't strong enough and they have since taken it off (I think).
3) Regarding Flex credentials, great point you have raised - does this even make sense for traditional bank issuers? I don't know if I would connect the origination of Flex credentials with what happened at Curve. At the end of the day, as you highlighted, there weren't many recurring users and the heavy users are likely the revolvers (yikes)...
Thanks for the comment. To some extent Monzo has build their own version in house as they allow users to “flex” most transactions and turn them into instalments or even a longer term credit transaction. There’s a strong likelihood of seeing more neobanks go live with a similar product via VFC or MOC especially as partners such as Marqeta and Affirm will also be out talking to prospective clients about their offerings, and how they can support with this.
Nice breakdown and appreciate the long form analysis; all excellent. There are definitely some interesting sub-topics worth exploring like coopetition (e.g. when is it beneficial to the end user, issuer and network).
I want to offer some views:
1) I was working in Visa AP product and I remember discussing Curve with colleagues. I don't believe Visa ever supported Curve or a product like Curve - it was all in Mastercard's camp. It was seen as fronting the transaction and therefore against the spirit of the rules.
Because the unit economics, business model NEVER made sense (and it played out to be the case), we were dismissive of such products and put it into the bucket of it will fail soon enough.
2) Nium launched their Amaze card (also on MC) with this feature in Singapore. Like Curve, I believe the USP wasn't strong enough and they have since taken it off (I think).
3) Regarding Flex credentials, great point you have raised - does this even make sense for traditional bank issuers? I don't know if I would connect the origination of Flex credentials with what happened at Curve. At the end of the day, as you highlighted, there weren't many recurring users and the heavy users are likely the revolvers (yikes)...
This was a brilliant breakdown 👏
Thanks so much for your feedback!
Thanks for the comment. To some extent Monzo has build their own version in house as they allow users to “flex” most transactions and turn them into instalments or even a longer term credit transaction. There’s a strong likelihood of seeing more neobanks go live with a similar product via VFC or MOC especially as partners such as Marqeta and Affirm will also be out talking to prospective clients about their offerings, and how they can support with this.