Mastercard Solidifies Lead... Tops Visa Again as Number One

Mastercard Overseas Card Share 60%... Visa Falls Behind Again
Consistent Strength Since 2020
Visa Customer Attrition Increases After Fee Hike

International credit card brand Mastercard is solidifying its position as number one by widening the gap with its competitor Visa. Since Visa raised its overseas usage fees in 2017, Mastercard's aggressive marketing efforts have tilted the market landscape in its favor.

On the 7th, Card Gorilla, the largest credit card platform in Korea, surveyed 59 newly launched credit cards in the first half of the year based on individual member cards (excluding simple design additions and cards issued under specific conditions such as VVIP cards). The results showed that more than half of all cards, 34 types (57.6%), adopted Mastercard. Visa ranked second with 24 types (40.7%). Other brands included Amex, known for its premium services (13.6%), Japan's JCB (3.4%), and China's UnionPay (3.4%).

Last year as well, Mastercard accounted for 61.8%, nearly twice that of Visa (35.5%). Since Mastercard first surpassed Visa's share at the end of 2019, it has steadily maintained its lead. This has led to reactions suggesting a shift from a 'duopoly' system to a 'dominant single leader' system.

Domestic card companies partner with international brands to enable customers to use overseas payment services. This is because it is difficult for domestic card companies to individually establish partnerships with overseas merchants. International brands utilize their established overseas payment networks formed through merchant relationships with foreign stores, and domestic card companies pay fees for this service.

Visa, the world's number one in international payments, held the top position in the domestic market until 2016. However, from mid-2016, when it raised the overseas usage fee rate from 1.0% to 1.1%, card companies began to turn away. Although card companies filed a complaint with the Fair Trade Commission accusing Visa of abusing its monopoly position, the commission concluded in 2018 that there was no wrongdoing.

Although Visa was cleared of monopoly abuse charges, it lost the support of its client companies. With Mastercard's active marketing, the domestic market position changed. It is said that Mastercard is dominant not only in personal credit cards but also in corporate credit cards. A representative from a major card company explained, "While Visa may have higher public recognition, in the field, Mastercard has already surpassed Visa quite some time ago. The share of Mastercard in overseas-compatible cards seems to have exceeded 60%, and it looks like it will continue to lean heavily towards Mastercard."