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There could be ways round the big-data-required problem. You could charge different transaction fees depending on how good your data is on somebody and allow th
by ximeng 13y ago
There could be ways round the big-data-required problem. You could charge different transaction fees depending on how good your data is on somebody and allow them to provide data to improve your confidence in them. Or require deposits from people and return them over time.
- bigiain 13y agoThat's a good idea - but I suspect it'd be a much harder sell to end user merchants (and their web developers). Explaining "our fees are based on your customers fraud risk, only 0.9% + 25c per transaction for people who've liked your facebook page and have more than 100 facebook friends and an account more than 24 months old, up to 5% + $1 per transaction for people using TOR or coming from ex-Russian-state ip addresses" isn't going to go down so well as "Paypal costs 2.9% + 30c/transaction and works globally in any currency, you can probably get half that rate from you own bank if they'll give you an internet merchant number - but they'll probably only give you local currency transactions."
- ximeng 13y agoAgreed. It might be easier to charge the customer rather than the merchant. If as customer I could choose from a list of payment providers and get a different fee from each one then the competition would be very transparent. Plenty of barriers to overcome to get to that point though.