MasterCard buys 25% of Cybersource

December 29th, 2007 • Related • Filed Under

MasterCard buys 25% of CybersourceWhile just a rumor, sources say that MasterCard (NYSE MA) is going to acquire a rather large stake in Cybersource (Nasdaq CYBS). Some say as low as 5% while others say as high as 30%. What does this mean to the industry?

First off, the CyberSource buyout of Authorize.Net was a bad move for merchants all around but what can that mean for merchants when MasterCard gets involved? Well, if you are one of the 200k plus Authorize.Net merchants, you can probably expect support to be degraded even further (as if 45 minute support hold times wasn’t bad enough). Second, could this mean that competition in the risk management space could be hurt, thereby limiting the tools and options merchants have? Well, I believe it’s an even better chance for those in risk management to step up to the plate while CyberSource and MasterCard are distracted at appeasing its investors.

All in all, it’s going to be interesting to see what this does for both stocks. CyberSource has been increasing steadily as it’s made a series of strategic moves geared at raising it’s stock price and MasterCard couldn’t have done better in it’s IPO.

One could only imagine, who will Visa acquire to compete?

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