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> It would be an absurd amount for a payment system, yes, because we already have a secure worldwide communications network that we pay to maintain and there's
by kelnos 2y ago
> It would be an absurd amount for a payment system, yes, because we already have a secure worldwide communications network that we pay to maintain and there's nothing special about Visa's encrypted bits.
Sure there is. Someone had to build the all the software that deals with those encrypted bits. Someone had to scale it up to handling tens (hundreds?) of billions of transactions per year, each one approved or declined within a few seconds.
If you think it costs zero dollars and we can just say "the internet is our payments system" and call it a day... well, I don't know what to tell you. Your expectations are so far from reality that I'm not sure we're going to have a productive discussion.
- cubefox 2y agoThe maintenance costs are probably closer to zero than to the current profit margins of the credit card companies. FedNow transfers are almost free after all. $0.043 per transaction according to Wikipedia.
- carlosjobim 2y agoVisa's operating costs in 2023 were $10-$11 billion, compared to their profit of $17-$18 billion. This is on a revenue of $32 billion.
- cubefox 2y agoFedNow's operating cost must be multiple orders of magnitude lower.
- carlosjobim 2y agoWould they be if FedNow had a planetary instant payment system with the same amount and value of transactions as Visa, including fraud protection?
- kibwen 2y ago> If you think it costs zero dollars and we can just say "the internet is our payments system" and call it a day... well, I don't know what to tell you. If you can somehow manage draw this conclusion after reading my comment, then I'm not sure we're going to have a productive discussion.