The bribe in this case is free consumer to consumer transfers (and I don't think this bribe should be underestimated), but you're right, savvy consumers will still just use their rewards cards and continue to be subsidized by those who don't have rewards cards.
I don't think anyone will pull the plug on Visa/MC any time soon, but more competition would be nice.
I don't think anyone will pull the plug on Visa/MC any time soon, but more competition would be nice.