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They just need to remove regulations. The reason there's a duopoly is that it's nearly impossible for a startup today to start a similar payment network.
by olalonde 2y ago
They just need to remove regulations. The reason there's a duopoly is that it's nearly impossible for a startup today to start a similar payment network.
- gaganyaan 2y agoWhat regulations, specifically?
- olalonde 2y agoAML/KYC mostly.
- ryandrake 2y agoSmaller companies are more than able to comply with AML/KYC.
- olalonde 2y agoComplying is easy, doing it economically is another thing.
- viknesh 2y agoSounds like a great opportunity for a startup to fix! In the country I live, there is a standard AML/KYC service that allows customers (banks, utilities) to easily perform ID verification in a few minutes.
- agtech_andy 2y agoYes. They just have to pay a few thousand per month to places that do it as a service.
- threeseed 2y agoNo. We shouldn't make it easer for criminals to conduct terrorism, human trafficking, fraud etc just to make it slightly more economical for startups to compete with Visa/Mastercard.
- akira2501 2y agoWhen was the credit network used to finance terrorism? If we can't prevent terrorism then isn't it an advantage to have them move their funds on a network that can be completely traced and retroactively inspected? We'd prefer if terrorists use cash? Or we believe that if they can't use Amex it's impossible to use cash and therefore terrorism is defeated? Also, when the startups compete with Visa/Mastercard, they provide that service to small businesses. So really, it's to make it massively more economical and easy for humans to start businesses that take credit.
- rootusrootus 2y ago> isn't it an advantage to have them move their funds on a network that can be completely traced and retroactively inspected? Isn't that advantage precisely because of AML/KYC requirements on the networks?
- threeseed 2y ago> We'd prefer if terrorists use cash Yes. It is a million times easier to catch criminals trying to physically launder large volumes of cash than it is to track money flowing through multiple companies (on/off-shore, crypto, different owners, different jurisdictions etc). Why do you think AML/KYC is such a priority ?
- akira2501 2y ago> It is a million times easier to catch criminals trying to physically launder large volumes of cash Which is odd because all the arrests and cases I see published all catch the money laundering activity because it reached the banking system, not because an alert officer spotted large volumes of physical cash. > Why do you think AML/KYC is such a priority ? I honestly don't know. I can't see any evidence which suggested it needed to be made a priority generally. It looks like most of this fraud involves real estate.
- stanleydrew 2y agoThis completely ignores the power of network effects. Even if all regulation were removed tomorrow I doubt the market would accommodate new entrants.