Visa Inc.: Threat from Cryptocurrency?

Name: Visa Inc.: Threat from Cryptocurrency?
SKU: 9B20M038_P

Arpita Agnihotri; Saurabh Bhattacharya

Product #:9B20M038_P

Supplier:Ivey

Discipline:General Management

Setting:United States, 2019

Details:Case (PDF) • 12 pages • 2020-03-12

Subjects:

Cryptocurrencies Innovation Blockchain Management

Geography:

North America United States

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$10.54

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The case discusses how cryptocurrencies such as Bitcoin posed a threat to Visa Inc. (Visa). In March 2019, the Kroger Co., a leading retailer in the United States, was planning to accept cryptocurrencies from consumers as a mode of payment. According to Alfred F. Kelly, the chief executive officer of Visa, cryptocurrencies were an inefficient means of retail-related financial transactions, though the company invested in the research and development of cryptocurrency for corporate transaction purposes such as cross-border payments. Should Kelly consider cryptocurrency as a disruptive force in the retail sector? Should she focus more on the retail or the business to business sector for cryptocurrency-based transactions?

Learning Objectives

This case is intended for undergraduate- and graduate-level courses on technology and innovation management or strategy. The case discusses innovation challenges faced by Visa, a leading financial services industry incumbent, due to the threat posed by new technology, namely blockchain, in the financial services industry. After working through the case and assignment questions, students will be able to do the following:

Understand how businesses make investment decisions related to existing vs. potential technology.
Analyze when and how a company should self-disrupt.
Critically analyze the role of start-ups in innovation introduced by large firms.
Examine the stages of blockchain implementation.