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Why do so many people think payments is the key to monetization? Is it really as dumb as "it involves money"? Payment processing is a total commodity business
by abalone 13y ago
Why do so many people think payments is the key to monetization? Is it really as dumb as "it involves money"?
Payment processing is a total commodity business that is super-resistant to increasing its tiny margins, which is what would need to happen to monetize it to the tune of a 10 digit valuation.
In comparison layering advertising or premium features on top of messaging is a much more feasible way to generate revenue, since that is pure margin. It's not a superficially sexy / hand-wavey though.
- SandersAK 13y agoI don't think it's about payments per se, it's about owning the moment when spending money is required / relevant for the user. If you're in a chat app all damn day (like all my family is), and something comes up (OMG it is Dad's birthday), I'd rather just get the shopping, reservations, etc done right then and there at the point of relevancy. WeChat's success isn't about having the credit card, it's about making that moment of action extremely fluid.