4 ms·

wonder if stripe is capable of bidding. Would be strategic for them if they could make this work i bet

• moffkalast 4y ago
  Why would Stripe need to buy a bank, they already have a license to print money.
  • azinman2 4y ago
    How so?
    • moffkalast 4y ago
      They get to charge 3% and 30 cents for a fifth of all web purchases made on the entire damn planet?
      • azinman2 4y ago
        I doubt it’s 1/5 of all web total purchases on the planet, but either way they’re not the ultimate exchange provider so most of that 3% + 30 cents goes likely to JP Morgan (and then split up amongst others), and they’re always looking for ways to expand their core competencies. Nothing about that is a “license to print money,” which when we’re talking about banking, sounds like making fiat currency.
        • moffkalast 4y ago
          Well it's a ballpark estimate, most sources I've seen put them at around 19-21%, with Paypal at around 30-40% and various other small ones at a few percent each. If Visa and Mastercard manage to run their entire business on less than 1% from every transaction then I would expect Stripe to have at least 1% of pure profit from what they charge. I assume that's what JPM gets if they're the stockholder. I mean printing money in the colloquial way of making tons of cash without any effort (which this frankly ought to be if the system is set up right), not with JPow's xerox.
          • azinman2 4y ago
            That would suggest Amazon, Walmart, target, Macys, etc are in the 50% bucket. Then there’s medical billing which I doubt uses Stripe or PayPal, adult services… these numbers don’t sound right to me. I think square is a bigger player here too, but maybe that’s largely in person rather than online. Perhaps it’s number of transactions versus told spend? But even that doesn’t quite sound right to me. I’m happy to be wrong here. Googling around it seems Visa/MC are more in the 1-2% range, but there are lots of additional fees and money grabbers on top of this. Im finding it difficult to get a total breakdown of parties and percentages - this is likely by design. Stripe isn’t public yet, so we don’t actually know how much they’re making. I guess when you say “they have a license to print money” in the context of no reason to buy a bank, that’s confusing.
      • deleted 4y ago
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