In Fifty Days, Payments Innovation Will Stop In Silicon Valley
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Re: In Fifty Days, Payments Innovation Will Stop In Silicon Valley
#2How does this affect SaaS billing companies such as Chargify, Spreedly, Recurly, et. al. since they're merely passing along information to a gateway? I assume not at all, if I understand what I am reading.
What about something like Stripe? It sounds like they may be affected?
This does not sound particularly fun or exciting.
Re: In Fifty Days, Payments Innovation Will Stop In Silicon Valley
#3How does this affect SaaS billing companies such as Chargify, Spreedly, Recurly, et. al. since they're merely passing along information to a gateway? I assume not at all, if I understand what I am reading. What about something like Stripe? It sounds like they may be affected? This does not sound particularly fun or exciting.
Credit and debit cards are issued by banks and banks are exempt from money transmission laws.
This is why you see most startups gravitating toward niche markets that revolve around the existing infrastructure, but those niches are becoming awfully narrow.
In contrast, I contend that the system itself is flawed and needs to be replaced.
Re: In Fifty Days, Payments Innovation Will Stop In Silicon Valley
#4They want companies that operate like banks, such as PayPal, to be licensed. I'm not sure I see the downside. PayPal has a shocking record of abusing it's customers, and it can only do so because it isn't bound by the same laws as banks are.
Personally, I think if you rely on PayPal/etc for your business, you're asking to get financially raped.
Re: In Fifty Days, Payments Innovation Will Stop In Silicon Valley
#5They want companies that operate like banks, such as PayPal, to be licensed. I'm not sure I see the downside. PayPal has a shocking record of abusing it's customers, and it can only do so because it isn't bound by the same laws as banks are. Personally, I think if you rely on PayPal/etc for your business, you're asking to get financially raped.
If they wanted companies to be licensed they could just require a license. Instead they require a license and a bond worth millions of dollars in some cases, nominally to protect consumers. Yet if you have a million consumers in a state and a $1,000,000 bond, that means that if the company defaults, each consumer gets back a dollar.
This doesn't sound like consumer protection to me. It sounds like an artificial barrier to entry.
Also, PayPal has had licenses in all states that require them since its IPO, and clearly there's no connection between this issue and customer service.
Re: In Fifty Days, Payments Innovation Will Stop In Silicon Valley
#6They want companies that operate like banks, such as PayPal, to be licensed. I'm not sure I see the downside. PayPal has a shocking record of abusing it's customers, and it can only do so because it isn't bound by the same laws as banks are. Personally, I think if you rely on PayPal/etc for your business, you're asking to get financially raped.
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Re: In Fifty Days, Payments Innovation Will Stop In Silicon Valley
#7They want companies that operate like banks, such as PayPal, to be licensed. I'm not sure I see the downside. PayPal has a shocking record of abusing it's customers, and it can only do so because it isn't bound by the same laws as banks are. Personally, I think if you rely on PayPal/etc for your business, you're asking to get financially raped.
I would agree, but the price is steep for no reason other than apparently to keep new players out, and there isn't any indication that the license, if acquired by e.g. Paypal, would do anything to curtail Paypal's abuses (they are a shitty company I agree).
Re: In Fifty Days, Payments Innovation Will Stop In Silicon Valley
#8How does this affect SaaS billing companies such as Chargify, Spreedly, Recurly, et. al. since they're merely passing along information to a gateway? I assume not at all, if I understand what I am reading. What about something like Stripe? It sounds like they may be affected? This does not sound particularly fun or exciting.
Credit and debit cards are issued by banks and banks are exempt from money transmission laws. This is why you see most startups gravitating toward niche markets that revolve around the existing infrastructure, but those niches are becoming awfully narrow. In contrast, I contend that the system itself is flawed and needs to be replaced.
Ah, thank you for explaining that to me. I some how missed that from reading the link. Though, it was quite verbose and I am, admittedly, partially into a celebratory post-coding-session bottle of wine.
I agree. The system most definitely appears to be flawed.
Isn't Paypal forced to operate as a bank in Europe as opposed to the way they exist in the U.S.?
Re: In Fifty Days, Payments Innovation Will Stop In Silicon Valley
#9They want companies that operate like banks, such as PayPal, to be licensed. I'm not sure I see the downside. PayPal has a shocking record of abusing it's customers, and it can only do so because it isn't bound by the same laws as banks are. Personally, I think if you rely on PayPal/etc for your business, you're asking to get financially raped.
If they wanted companies to be licensed they could just require a license. Instead they require a license and a bond worth millions of dollars in some cases, nominally to protect consumers. Yet if you have a million consumers in a state and a $1,000,000 bond, that means that if the company defaults, each consumer gets back a dollar. This doesn't sound like consumer protection to me. It sounds like an artificial barri…
Well, there is a (flawed) line of reasoning that says that if you can come up with $1M then you must be more trustworthy than someone that can't.
Re: In Fifty Days, Payments Innovation Will Stop In Silicon Valley
#10Boohoo, cry PayPal a river.
In most countries outside the US, PayPal is regulated like a bank. This means PayPal can't just lay claim to your money and never give it back to you.