Visa Shares Fall As Amazon Decides To Pull The Plug Off Visa Credit Card In UK

Amazon.com Inc AMZN informed customers that "starting 19 January 2022, we will no longer accept Visa Inc V credit cards issued in the U.K." due to the high fees charged by Visa to process transactions, Bloomberg reports.
Amazon customers can still use Visa debit cards, MasterCard, Amex credit cards, Visa credit cards issued outside the U.K.
"We are very disappointed that Amazon is threatening to restrict consumer choice in the future. When consumer choice is limited, nobody wins," a Visa spokesman said. "We have a long-standing relationship with Amazon, and we continue to work toward a resolution."
Analyst rating: Baird analyst David Koning who made no change to his Outperform rating on Visa, believes this is immaterial for several reasons, including that consumers can still use debit cards, which likely generate the exact yield to Visa, as well as that the U.K. in total is "maybe around 6%" to Visa revenue and Amazon a small part of that.
While not material, Koning believes the news is a sentiment headwind, but likes Visa and expects growth over the next few years to be faster than usual.
Price Action: V shares traded lower by 5.40% at $203.55 on the last check Wednesday.