Citi says the several changes and clarifications Visa (V) and Mastercard (MA) announced as part of the class settlement agreement with U.S. merchants “skews positively.” The largest discrete impact is to issuer economics via lower interchange fees over the next 3-5 years, the analyst tells investors in a research note. The firm says that while the collective impact of rule changes will not be visible for some time, the settlement outcome “skews positively” as it reduces a regulatory risk element and may further reduce the probability of incremental legislation. Citi keeps a Buy ratings on both Visa and MasterCard.
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