The Wall Street Journal reports that the two biggest card networks, Visa and MasterCard, are each exploring a new online venture that would involve using consumers’ credit card information to create targeted ads.
Are you kidding me? Can’t Visa and MasterCard focus their time and energy on delivering a payment platform that is secure and protects merchants and consumers from fraud and identity theft? I guess not. It appears that they want to be the next Google. It is scary that anyone involved in my finances wants to sell information about me. Even if it is within “the boundaries of the law” it seems like a a bad idea if you want to maintain a trust relationship with your clients.
The financial services industry should take a hard look at what just happened to Netflix. The industry seems to think that consumers do not have a choice. Consumers do have a choice.