Nice, I assume this give Stripe the ability to shortcircuit Visa/MC on a payment between a Stripe card and Stripe as the processor and capture more of the revenue without needing to share it.
Visa and mastercard should be very worried about being displaced.
Similar to how an account to account transfer in the same bank does not go though whole SWIFT network etc.
Many businesses and individuals would still prefer to have a Mastercard or Visa at this time as most international websites that sell services and goods don't accept Rupay.
This product is more of a direct competitor to American Express.
It also seems to me that if Visa/MC were smart they would write (or have written) into their TOS provisions disallowing this. Both refusing to allow stripe to issue cards which would bypass them as well as refusing to allow stripe to process cards without going through them. I'm sure there could be some justification for that (security or privacy or some other nonsense), but, it seems like this is a slippery slope to cannibalizing Visa/MC out of existence, not that I'm objecting to that per-se, but I assume Visa/MC would want to avoid it.