To be clear, there are many viable payment businesses today. Many exist because of the INEFFICIENCIES of the current network. My top examples surround P2P and international remittance (see my note on Xoom). Banks have the ability to completely defeat any 3rd party service in these areas, yet they choose not to.
I’m actually starting to change my attitude on Visa. Its not just that Jim McCarthy is down the street from my in North Carolina… but rather Charlie is changing the culture there from one that alienated everyone.. back to a network that wants to add value to all.