Payments, Processors & IT Services: Network valuation overhangs Part 1: Regulatory clouds clearing

Research evidence excerpt

Payments, Processors & IT Services: Network valuation overhangs Part 1: Regulatory clouds clearing

stablecoins. It is a multi- BofAS

year erosion risk to the networks’ European card volume and the scheme fees on it natalie.howe@bofa.com

(domestic and intra-euro-area payments, where a euro-denominated public rail can

substitute) not to the FX-driven cross-border yield, which the digital euro cannot reach,

since it neither converts currency nor extends beyond the euro area.

Exhibit 1: 5 Development Summary CBDC- Central Bank Digital Currency

MDL 1720, in our view is the biggest overhang that has been resolving recently, and historical precedent

says large merchants don’t sustain decline/surcharge attempts at scale MDL- Multidistrict Litigation

Issues Progress Near Term Event Details

Biggest overhang potentially resolving, rights to

deny is by category of card, not issuer;

Judge Cogan granted preliminary precedent says large merchants don’t sustain

MDL 1720 Proceeding approval - Jun 9th decline/surcharging

Illinois IFPA Federal preemption wall built, effective date

(Tax/Tip) Improving Permanent injunction - June 1 slipped to Jul '27; CO vetoed

Mechanically weaker than Durbin amendment;

Targeting housing vehicle cleared urgency diminished by Cogan remedy on MDL-

CCCA (Routing) Improving Congress - Without CCCA 1720 The authors of this report are not

acting in the capacity of a legal

DOJ v. Visa Visa only, US debit only, behavioral remedy, adviser, and the information

(Debit) Proceeding Fact Discovery to Oct '26, trial ’27 - '28 long tail, not cleared

contained herein is not intended to

Long dated, holding capped, navigable, theme constitute legal advice. You should

EU Sovereignty Proceeding Digital euro ECON vote - June 23 compounds consult with your legal advisor as to