Visa Stock Plummets on AI Disruption Fears, Drags Down Payment Peers
Visa shares tumbled 4.5% in Monday's session following a speculative research note warning of AI's potential to disrupt traditional payment networks. The selloff spread across card networks, with Mastercard dropping 5.7% and American Express falling 7.2%.
Citrini Research's hypothetical 2028 scenario depicted AI agents circumventing card networks, potentially eroding Visa's lucrative fee structure. While framed as speculative, the narrative struck a nerve with investors already weighing a pending $38 billion swipe fee settlement.
The payment processor clawed back 0.2% in early Tuesday premarket trading, suggesting some investors view the AI threat as premature. Market reactions to theoretical disruptions highlight growing sensitivity to technological obsolescence risks across financial services.
