4 ms·

I think it probably depends a lot on scale. For a lot of small or medium businesses 4.2% + $.30 is about 1.5-2% more than they would pay for barebones card ser

I think it probably depends a lot on scale. For a lot of small or medium businesses 4.2% + $.30 is about 1.5-2% more than they would pay for barebones card service. But the addition of tax reporting, and periodic billing more than make up for the cost of having to hire an employee or other service to handle this. PCI compliance, advanced fraud detection, etc... As you scale, sure, you should maybe think about in-sourcing this, but how many hours per year of employee time do these services save. This is a great article for comparison, but I think a lot of people who haven't run businesses would be shocked at the cost of handling money. Having worked at a bank I would not be surprised if cash is more expensive than credit card fees.

Silhouette 4y ago
I think an interesting comparison now is between payment service providers (including Stripe) and all-in merchant of record services (like Paddle). At some point all the extra fees for additional services add up and using a PSP isn't so attractive financially any more. All the extra admin and integration work you still need to do with a payment service provider can also be a barrier. I'm surprised the MoR market hasn't become more crowded and competitive already. It's often suggested around here that if something is core to the purpose of your business then you should do it and if not then you should outsource it as much as possible. MoR seems like the logical conclusion of that argument for a lot of financial activities.