Earlier quoted context omitted.
If the fintech revolution is just around the corner, then how about we just delay these acquisitions a little just to safe? (In reality, I think the only fintech revolution that might be around the corner is new services the federal reserve rolls out)
Can you share a link of the new service by the Fed? I wanted to show it to somebody, but I don't know what it's called so it doesn't turn up on Google.
Justice Department Sues to Block Visa's Proposed Acquisition of Plaid
81–90 of 119 posts
Re: Justice Department Sues to Block Visa's Proposed Acquisition of Plaid
#82Earlier quoted context omitted.
- Plaid is hardly alone in its competitive space. Even if Finicity sucks and SynapseFi is mid-implosion, they don't have a corner on capabilities like this indefinitely. MX is pretty alright. - That ignores FANG platforms that could implement similar money-moving features. - Stripe trotted out their "Banking as a Service" APIs today. - Let's not forget the Chinese giants that have obviated the day-to-day need for cre…
If the fintech revolution is just around the corner, then how about we just delay these acquisitions a little just to safe? (In reality, I think the only fintech revolution that might be around the corner is new services the federal reserve rolls out)
In the meantime there is RTP https://www.theclearinghouse.org/payment-systems/rtp
Re: Justice Department Sues to Block Visa's Proposed Acquisition of Plaid
#83This press release is a month old - I didn't notice any new information released. See related article and discussion from early November here: https://news.ycombinator.com/item?id=24999975
Re: Justice Department Sues to Block Visa's Proposed Acquisition of Plaid
#84Browsing forwards, I looked upon mentioned Sherman and Clayton acts. Clayton act seems to be specifically about mergers.
It looks to me that Sherman act might not be applied to app stores because it excludes 'historic accident and growth' - but could it be up to discussion, because Apple and Google have changed rules after getting dominant position? Specifically preventing external payment mechanisms.
https://www.ftc.gov/tips-advice/competition-guidance/guide-a...
https://www.justice.gov/atr/competition-and-monopoly-single-...
Re: Justice Department Sues to Block Visa's Proposed Acquisition of Plaid
#85Earlier quoted context omitted.
Where they aren’t using APIs and instead the scrapers, does that mean they have your banking login credentials? Be curious to hear how they get around MFA.
Yes, they also can monitor and scan your financial transactions. Accepting their T&C and Privacy Policy gives them too much power, consumers are freely giving away access to their financial information for convenience.
So what? Convenience is nice. And I'm willing to pay for convenience when the other options are far less convenient.
Re: Justice Department Sues to Block Visa's Proposed Acquisition of Plaid
#86Earlier quoted context omitted.
Isn't a race to the bottom the best possible thing that could happen to transaction fees?
In a competitive industry with high fixed costs and low _marginal_ costs, a race to the bottom often leads to pricing less than _average_ costs and a reduction in service quality (or inability for providers to replace infrastructure consumed in providing service.
I keep having to make this point to both my liberal and conservative friends, but ... just because microecon 101 (or macroecon 101 in some cases) is conserved doesn’t mean it’s an optimal solution. If your high fixed cost infrastructure suddenly becomes critical for society to function perhaps it’s time for a much different conversation.
Re: Justice Department Sues to Block Visa's Proposed Acquisition of Plaid
#87Earlier quoted context omitted.
Isn't a race to the bottom the best possible thing that could happen to transaction fees?
In a competitive industry with high fixed costs and low _marginal_ costs, a race to the bottom often leads to pricing less than _average_ costs and a reduction in service quality (or inability for providers to replace infrastructure consumed in providing service.
But that argument completely ignores the consequences to prices less than average.
If you drop your fees so low your customers get pissed, well then, you'll loose customers. Or if you can't afford to maintain infrastructure, then you'll lose customers due to your unreliability.
A race to the bottom is the reason we have 60" flat screen TVs that are better quality and cost a fraction of what a similar TV cost 10 years ago. It's a good thing.
The race to the bottom in the airline industry was entirely driven by consumers who were willing to put up with crappy seat just to save $10. They got exactly what they wanted.
That said, we are seeing a shift toward premium economy. Basically some airline said "I'll bet there are some customers will to pay more to get more" and they were right.
HN likes to talk about the "race to the bottom" as some failing of capitalism, when it's actually working exactly as it should. "The market" doesn't get it right every time - plenty of companies make the wrong trade off - but the consumer is the ultimate decision maker if the tradeoff is worth it.
Re: Justice Department Sues to Block Visa's Proposed Acquisition of Plaid
#88Earlier quoted context omitted.
I'm curious to hear more about the airline race to the bottom you're talking about. I've been flying once or twice a year for the last 7 years or so, and it's all pretty much been the same except perhaps a lot more addons and bagging fees. Were airlines very different in the past?
> Were airlines very different in the past? Yes, they were much more expensive, but used to provide more for free. There was a time they even had legroom. https://www.theatlantic.com/business/archive/2013/02/how-air...
Yeah, and ticket prices were 20 to 50% higher. Consumers had options and choose the lower price.
I remember not long ago when flying was a serious financial commitment. Flying economy from LA to NYC might set you back $600 in 2000 dollars ($900 today). Now you can find a ton of flights for under $400.
I don't want to go back to the way it was.
Re: Justice Department Sues to Block Visa's Proposed Acquisition of Plaid
#89Earlier quoted context omitted.
I'm curious to hear more about the airline race to the bottom you're talking about. I've been flying once or twice a year for the last 7 years or so, and it's all pretty much been the same except perhaps a lot more addons and bagging fees. Were airlines very different in the past?
Yes. But much longer ago than 7 years. Seats have been getting closer together both in terms of less leg room and reduced seat width. Food has been all but eliminated from economy. To see the continued slide take a look at basic economy and carriers like Spirit (to which basic economy is a response to). No assigned seats, no carry on bags, no drinks on the plane. They’d offer standing room only and charge for the res…
Right. But they have no problem filling those planes. Even when consumers have the option of flying a marginally better economy flight for $50 more, they reject it.
Re: Justice Department Sues to Block Visa's Proposed Acquisition of Plaid
#90Earlier quoted context omitted.
Isn't a race to the bottom the best possible thing that could happen to transaction fees?
To a certain extent, it is detrimental if the prices are lower than the transaction expenses. Because you have to pay indirectly which is even worse
Can you elaborate on this?