To my surprise, many mainstream media reporters and investors reached out to learn more about this deal. I thought it would be more efficient for everyone to directly share my thoughts here.
Per 1.2: Not sure there will be much demand from large merchants as they are paying ~50bps for credit and ~10bps for debit https://blog.starpointllp.com/?p=6348
Add to that the (current) lack of rewards and purchase protection for consumers. That said, stablecoins do enable people without cards to transact which is a huge opportunity for PSPs like Stripe.
Could you elaborate on how the significantly lower fee is achieved? The part that’s paid to the payer’s issuance bank can’t simply be waived by a deal with v/ma
Personally I think chargebacks is a bug instead of a feature. Funds should be insured by cryptography instead of having a centralized system actively mending.The current card system is way too easy to fraud charge. Processing these chargebacks is an expensive pain in the ass for cardholders, banks and merchants
Largest merchants have negotiated discounted rates. Re: chargebacks, agree that they are a pain but they enable consumers to feel comfortable transacting with unknown merchants, especially online-only ones.
"Each merchant is able to negotiate its own card acceptance costs with its acquiring bank, and similarly, the merchant’s bank and card-issuing bank are also able to bilaterally negotiate their fees."
Per 1.2: Not sure there will be much demand from large merchants as they are paying ~50bps for credit and ~10bps for debit https://blog.starpointllp.com/?p=6348
Add to that the (current) lack of rewards and purchase protection for consumers. That said, stablecoins do enable people without cards to transact which is a huge opportunity for PSPs like Stripe.
Could you elaborate on how the significantly lower fee is achieved? The part that’s paid to the payer’s issuance bank can’t simply be waived by a deal with v/ma
Personally I think chargebacks is a bug instead of a feature. Funds should be insured by cryptography instead of having a centralized system actively mending.The current card system is way too easy to fraud charge. Processing these chargebacks is an expensive pain in the ass for cardholders, banks and merchants
Largest merchants have negotiated discounted rates. Re: chargebacks, agree that they are a pain but they enable consumers to feel comfortable transacting with unknown merchants, especially online-only ones.
since the 300bps fee is paid to issuance bank, v / ma, and merchant bank, i don't understand how a deal with v / ma can lower it to 50 bps
"Each merchant is able to negotiate its own card acceptance costs with its acquiring bank, and similarly, the merchant’s bank and card-issuing bank are also able to bilaterally negotiate their fees."
Source: https://www.mastercard.us/content/dam/mccom/en-us/documents/Myths-and-Facts.pdf