this post was submitted on 24 Jul 2023
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Honestly, once it reaches critical mass. It will mean the end of PayPal, Venmo et al AND the credit card industry as a whole.
I think between rewards and actual credit, credit cards will probably be fine, but I'm curious if you think this solves for either of these use cases.
Credit card rewards are really not worth it. These programs are largely funded by the fees that are charged to merchants which are ultimately passed on to you at time of purchase.
I would much rather have reduced costs of goods rather than have paltry credit card reward programs.
Ok, but if this new payment model takes over and there are no fees to merchants, I'm very skeptical those savings will be passed on to buyers. I think at this point credit card processing is pretty well priced in.
Probably right for most big box stores or multibillion dollar businesses. But you would be surprised how thin the margins are for local grocery stores. That 3-5% in processing could be used to compete or undercut big box competitors that price in the credit/debit card fee.
I think with the right approach (small businesses first) it could see high adoption. Plus it would make it slightly more attractive in setting up shop in places that wouldn’t otherwise get any attention (ie, food deserts)