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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 reven
by aquark 7y ago
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.
- bdcravens 7y agoVisa/MC is the payment network; cards like Stripe run atop it. (Just as Stripe relies on that network for its transaction processing) This product is more of a direct competitor to American Express.
- grey-area 7y agoYep, Stripe are also investors in Monzo. This is the obvious long term play and there is no way the incumbents can keep up. It would also allow massive innovation in payments too. Visa and mastercard should be very worried about being displaced.
- dbbk 7y agoHow is Monzo related? They’re still a bank and still use MasterCard.
- Nextgrid 7y agoWhen a Monzo card is processed by Stripe they can cut-out the middleman (MasterCard) and directly settle the payment between themselves.
- bdcravens 7y agoI assume that represents a very tiny % of their transactions.
- grey-area 7y agoOf course it does today. If you fast forward a few years and include this new stripe card it may not and as they own both ends of the transaction they could start to offer better features on transactions that don’t leave their network, incentivising both sides to use it.
- toomuchtodo 7y agoHighly optimistic.
- grey-area 7y agoYes.
- jacquesm 7y agoThis card is a Visa card. I don't think Stripe is close to replacing them. Not by a very long distance.
- kamyarg 7y agoI believe it is Visa to use them when transaction can not be "short-cut". I think If the merchant already is related to stripe(uses Stripe for its' payments on the website) and customer uses stripe card, stripe can bypass visa network and thus save on transaction fees. Similar to how an account to account transfer in the same bank does not go though whole SWIFT network etc.
- lotsofpulp 7y agoVisa might be the best business model ever made, I don't think it's going anywhere soon.. Extremely high barrier to entry, extremely low marginal costs, infinite scalability.
- blntechie 7y agoLook at China, India and other Asian countries. Visa and MasterCard never had that much of a strong foothold there and now debit and credit cards are pretty much antiquated by wallets and QR codes.
- muks 7y agoThis isn't true for India. Until last year, all the cards I'd seen in India were either Visa, Mastercard or AMEX. This year my bank tried to send me a "Rupay" card which is an Indian processor; on speaking to the bank staff, it appears that the central bank (RBI) are asking banks to promote Rupay by default to avoid transaction data from leaving the country. But it's still possible to change to a Mastercard or Visa card. 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.
- grey-area 7y agoSure, there will always be a middleman, but when plastic cards go away I suspect visa etc will be pushed out.
- danillonunes 7y agoHas anyone actually done this kind of thing before? That would break rewards and benefits offered directly by Visa/MC.
- AdamJacobMuller 7y agoHow does this work on a technical level with regards to contactless/chip payments? Who owns (and who has a copy of) the secret data inside the chip? 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.