A centralized payment system will never be able to provide the best service for users. With a single entity in control -- as opposed to an open system where newcomers can enter and compete with incumbents -- there are no competitors, and competitors are responsible for pushing down fees and adding innovation, thus forcing incumbents to follow along or fade away. That's why the web is so successful: competition is built in through an open protocol, so competitors can replace incumbents by providing a better service/price.<p>With the iPod and iTunes, and the iPhone and the App Store, Apple created something that didn't exist before, and captured most of the newly created market. Replicating VISA's business model doesn't do the same, but simply adds a couple of features to an otherwise closed system where users will not benefit from competition.<p>An actual alternative to VISA needs to be open, allowing for competitors to easily enter and compete with existing actors. Such a system is the Stroem protocol on top of Bitcoin, which is a thin clearing protocol designed for competition, constantly forcing issuers to follow along on price or be left behind. This is what merchants want, and what's needed to revolutionize payments.