The bargaining power of suppliers is low as it is relianton infrastructure of country operating in. The severaldecade-old payment infrastructures especially in advanced countries are animpediment to supporting real time payments. There is a lack of transparency inthe current settlement process with the value of free float enjoyed by bankscontinues to remain very high.
Computer and Packaged Software wholesalersrepresent the main suppliers to this industry. However, credit card companiesand ACHs do not represent the main customers of these wholesalers,?increasing their power over the credit cardcompanies. A number of players are already innovating in this area such virtualcurrencies like Bitcoin, all with the capability to build an alternate paymentsinfrastructure.
The Bitcoin application has fraud detection and multi-factorauthentication process as it is on the Blockchain. Bitcoin competitive rivalryis that it is very trustworthy and a possible player in the future of digitalpayment industry.The bargaining power of buyers is very high, as there are many userscompared to suppliers, the same process is applied and so a transaction isinvolved. Buyers’power over pricing is non-existent as the credit issuers determine what rateand terms borrowers receive according to credit reports and credit risk rules.Buyers’ main power is choosing to do business with certain companies overothers.