The Credit-Card Rule That Powers Rewards Cards Just Got Broken

Visa is focusing on AI-enabled payments and stablecoins to enhance its competitive edge in the Asian market. According to Stephen Karpin, the Asia-Pacific president, current chatbots lack the capability to facilitate payments through an agent, which is a significant feature that needs to be addressed. This strategic move reflects Visa's commitment to innovation in the rapidly evolving payment landscape.

Small business owners are facing increased costs due to credit card fees, with some merchants implementing a 2.5% financing fee for credit card transactions. Additionally, a minimum purchase of $10 is now required for credit card use at certain stores. This shift raises concerns about the sustainability of small businesses and the potential for customers to be discouraged from using credit cards, which have become a standard payment method. The implications of these changes could lead to further complications for merchants and their customers.

Saudi Arabia's Public Investment Fund (PIF) has divested from nine American companies, including Visa and Pinterest, ahead of Crown Prince Mohammed bin Salman's visit to the White House. This strategic move reflects the PIF's ongoing adjustments in its investment portfolio as it seeks to optimize returns and align with the Kingdom's broader economic goals. The timing of the divestment coincides with significant diplomatic engagements, highlighting the intersection of finance and international relations.