Visa Inc.. becomes a Payment Institution !

On July 21 Visa Inc.. announced the completion of its acquisition of CyberSource Corporation (for a total of $ 2 Billion). This acquisition allows Visa to reinforce his mastery over the management of security, fraud and online payment. The acquisition of CyberSource expands Visa's online payment, fraud, and security management capabilities. The combination is expected to accelerate the growth of the eCommerce category and enhance the value of Visa's network, product and service offerings to financial institutions, merchants, partners and consumers.

Here is what says the press release of July 21. However, last February 22, CyberSource Limited (subsidiary of Cybersource Corp.) got its license as Payment Institution in UK. In the same time, Cybersource has decided to passport its license to all EU countries.

The Questions are : How Visa will use the PI license (obtained through Cybersource) ? Is Visa going to build a strategy to compete against its banking partners?

It is a big subject !