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Venmo uses Visa uses via Paypal. Diner's Club is a subsidiary of Mastercard. Square and Cash also use Mastercard's network and I think they piggybacks off other
by Dracophoenix 5y ago
Venmo uses Visa uses via Paypal. Diner's Club is a subsidiary of Mastercard. Square and Cash also use Mastercard's network and I think they piggybacks off others.
In the US, and likely in most of the world, the only self-sufficient processors are Visa, Mastercard, American Express, and Discover.
- nybble41 5y agoThat's correct if you're processing a credit card, but some of these (PayPal, Cash App, perhaps Venmo) have their own separate accounts which bypass the card networks altogether. If you have a balance in Cash App and you send part of it to another Cash App user then they're not paying any fees to Visa, Mastercard, American Express, or Discover. PayPal and Cash App also support direct bank transfers (ACH) in addition to credit cards. Then you have the newcomers like Bitcoin with their own networks and processors (e.g. BitPay or Coinbase), or the option to perform your own processing.
- vineyardmike 5y ago1. Venmo is part of PayPal, and can use visa, but they don't need it. 2. Same with square and Mastercard. 3. No, there's plenty more ways to pay across the world, eg.: https://bam.kalzumeus.com/archive/payments-in-japan/ https://bam.kalzumeus.com/archive/payments-in-japan/ or another comment mentioning Indian UPI. 4. My argument is that there are more, and further that fintech was helping proliferate options, including the possibility that new processors spread. Eg. Apple Pay could be its own processor instead of falling back on just card networks, just as square+cashapp started doing.