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I'm happy for these guys but is it just me or is a 5% transaction fee nuts? I know, I know, Kickstarter, Indiegogo, you name are all roughly the same, and yes,
by chermanowicz 11y ago
I'm happy for these guys but is it just me or is a 5% transaction fee nuts? I know, I know, Kickstarter, Indiegogo, you name are all roughly the same, and yes, there is value in the "platform", publicity, etc. -- but you're basically just sending money from one person to another. Venmo (which is basically free) could roll out a platform like this in no time and charge 1 or 2%.
I just wonder why, in 2015, with all our technological progress and all the "innovation" in the payments space we're still tolerating really high transaction costs. /endrant
- AnimalMuppet 11y agoBecause 5% may be way more efficient than what we have now? (If it's not, there's no point in doing this.) But then, in a year or two, Venmo or whoever can charge 1 or 2% and eat their lunch.
- eli 11y agoDid cheap auction sites eat eBay's lunch? I'm not sure a couple of percent is as important as the other features like ease of use, sharing, and promotion.
- deleted 11y ago[deleted]
- untilHellbanned 11y agoCmon, their website does stuff. "Nuts" is a harsh word. You really think Kickstarter clone with 2% rate gets any traction?
- austenallred 11y ago> there is value in the "platform", publicity, etc. That's really what you're paying the 5% for. Not for collecting the money.
- tzier 11y agoMost of the value is in the site. You don't see people fundraising for their friend's family on Kickstarter - it's known as being a hub for products. Venmo's situation is also different, since they use ACH to move money (very cheap). GoFundMe might accept credit cards, which means there are industry standard processing fees of roughly $0.30 + 2.9%. (It's in best interest for GoFundMe, Tilt, etc. to push users towards debit card payments since the associated fees are lower.)