89 flowers on their back… inventors of the Accu-jack

311.jpg

MasterCard and Visa didn’t make, or even look, for profits for decades. MasterCard started as a not-for-profit membership association, in 1966, and Visa did the same, in 1971. Both associations managed their brands and ran the clearing and settlement systems for banks that issued cards or helped merchants accept cards. These card networks were allowed to charge their members just enough to cover cost and provide working capital. […]

Then the banks decided to turn the associations into for-profit companies, IPO them, and cash out. MasterCard IPO’d in 2006, and Visa followed two years later. Now they are very focused on making money. […]

Many other multisided platforms haven’t made the leap to making money. […] Standard Setting Organizations (SSOs) are multisided platforms that help members reach agreements over a standard (For example, mobile carriers, handset makers, chip providers and many others have to agree on a common standard — like 4G — for what they do to work together.) The SSO usually publishes a standard and disseminates it at low cost or even for free. That standard may then become a platform for many firms that produce complementary products and their customers.

{ Harvard Business Review | Continue reading }