Business
Public Policy Expert Warns of Visa and Mastercard’s Growing Influence

Concerns have emerged regarding the influence of Visa and Mastercard over global financial transactions. Public policy expert Vass Bednar, managing director of the Canadian SHIELD Institute, warns that these two credit card giants are extending their reach into areas traditionally regulated by governments, potentially stifling competition and impacting digital sovereignty.
During an interview with BNN Bloomberg, Bednar emphasized that Ottawa must prepare for resistance from financial service corporations as the federal government seeks to diminish reliance on U.S. infrastructure. “People are talking about digital sovereignty in big ways and small ways,” Bednar stated on October 3, 2023. She believes that the discussion around digital sovereignty needs to be made more tangible.
A significant example of this influence was highlighted when Visa, Mastercard, and other payment processors halted financial transactions from gaming platforms following pressure from an Australian advocacy group. This incident raises questions about the extent of power that these financial institutions wield when they sever ties with merchants.
“I actually have no problem with content moderation and content regulations,” Bednar noted. “I just think it’s interesting that it’s coming from these payment service platforms instead of governments.” This situation has led gaming companies to express concerns about the potential for financial firms to impose standards that could impact their businesses.
Bednar further criticized the arbitrary nature of such decisions, stating, “What mechanisms do we have to report these elements? Was it kind of arbitrary? Is that a risk? I mean, that’s just, it’s one form of power that they exerted recently.”
In contrast, Bednar pointed to Brazil’s central bank program, Pix, an instant no-fee payment system now used by three-quarters of the Brazilian population within just four years. She argued this initiative undermines the high-cost models employed by American corporations like Visa and Mastercard, which impose significant swipe fees on merchants. “There are lots of ways to pay for things,” she remarked, emphasizing that alternatives to Visa and Mastercard exist, but the two have established a norm in credit card transactions.
Pix facilitates instant, free transfers between bank accounts, mobile apps, and even street vendors through QR codes. According to EBANX’s Beyond Borders 2025 study, surging consumer demand for seamless and cost-effective transactions has led to record adoption rates for Pix and other account-based transfers, establishing them as the fastest-growing payment methods in emerging markets.
In response to these developments, the U.S. Trade Representative has launched an investigation into Brazil’s payment services, assessing whether they create a “discriminatory” barrier to U.S. commerce. Bednar questioned whether this investigation aims to protect Visa and Mastercard, suggesting that the U.S. may be attempting to stifle competition from alternatives like Pix.
“Easier said than done. How does that affect Brazil’s sovereignty, their ability to build something new that is a competitor?” she asked. This investigation raises concerns about the potential implications for Brazil as it strives to establish a competitive payment system.
Canada is also pursuing a similar initiative. The Real-Time Rail (RTR), set to be established under Payments Canada and the Bank of Canada, will allow Canadians to send and receive payments in real-time, 24/7, 365 days a year. Bednar remarked, “As Canada continues with its Real-Time Rail, or maybe other innovations, should we expect to be punished through the U.S. administration, through trade levers, for daring to either assert our ability to build a new competitor or just having a successful company that challenges U.S. dominance?”
The RTR aims to provide businesses and individuals with greater payment flexibility, reducing reliance on monopolized financial firms. This initiative reflects a growing trend among nations to reclaim digital sovereignty and foster competition in the financial sector, challenging the dominance of established players like Visa and Mastercard.
As the landscape of digital payments evolves, the dialogue surrounding regulatory frameworks and corporate influence will undoubtedly continue to shape the future of financial transactions worldwide.
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