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Square is probably the biggest game changer here simply because they also have the POS systems in place to just replace visa/MC if they want. They also have a b
by anonymous5133 8y ago
Square is probably the biggest game changer here simply because they also have the POS systems in place to just replace visa/MC if they want. They also have a bunch of apps like cash app....which apparently is going to be integrating bitcoin lightning network soon.
- docker_up 8y agoYou don't understand payments if you think they can just replace Visa/Mastercard. The whole value add of Visa/Mastercard is the networks they have with the hundreds of thousands of banks, etc, which Stripe doesn't have.
- ElatedOwl 8y agoStripe as an acquirer does have bank relationships. Visa isn't paying the merchant directly.
- abalone 8y agoDifferent kind of bank relationship. There are two banking roles involved in card networks: merchant acquirers and consumer card issuers. Visa/MC are the intermediary between them. Stripe only partners with a merchant acquirer bank. To replace Visa/MC they'd also have to get into the card issuing side of things: get a bank or banks to issue "Stripe cards" and get merchants to start accepting them.
- abalone 8y ago> they also have the POS systems in place to just replace visa/MC if they want. Yeah, that's not how it works. Banks that issue cards contract with intermediary card networks like Visa/MC, not POS system vendors. > integrating bitcoin lightning network soon Been hearing that for years. Basic problem is while merchants would love to have lower fees, consumers don't have a powerful incentive to switch off using cards. The usual argument is they would save ~2% on prices but there is actually evidence that this would't necessarily happen. When Australia regulated down processing fees, the savings were not passed onto consumers.