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As long as banks get the FDIC guarantee while American WeChat-type competitors don't, they'll be fine.
by the_watcher 8y ago
As long as banks get the FDIC guarantee while American WeChat-type competitors don't, they'll be fine.
- ISL 8y agoOnly among those well-enough versed in history and consequence.
- gruez 8y agoalso, credit cards have consumer protection by law in cases of fraud, "wallet" type services like alipay? not so much.
- tluyben2 8y agoWhile there is no guarantee by law, these companies do cover fraud with their vast reserves. Ofcourse an economic downturn could change that.
- gruez 8y agoI'd rather have fraud protection mandated by law, than provided as a good will gesture by the corporation. should there be a disagreement between me and the company, the former provides me with legal recourse, whereas the best I can hope for with the latter is a social media shitstorm.
- tluyben2 8y agoOfcourse, just saying how it is and that it is pretty well accepted by 100s of millions of people.
- pishpash 8y agoMost purchases on those platforms are for consumables, food, event tickets, etc.
- IkmoIkmo 8y agoTwo different products tbh, we all throw it into (retail) 'banking' but, payment processing and savings/investments are different products that needn't exist under the same umbrella. Moreover, the median American has around $3000 in his bank account and a lot of people have negative cash balances. FDIC insurance isn't a big deal in the lives of many millions of people. And even if it was, there's no reason you can't have a bank account with FDIC insurance for your cash savings, and a WeChat like payment system for day to day payment processing.
- frockington 8y agoHow exactly does WeChat make money? I was under the impression that banks ate the cost of poor customers with a checking account and generated revenue from individuals who could use their money in other avenues. If anything WeChat might trim poorer individuals from the balance sheet for other banks