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Bank transfers as a payment method

bam.kalzumeus.com

11–20 of 335 posts

Re: Bank transfers as a payment method

#11
About UPI: The standardisation of payment interface is done by a corporation called NPCI. It’s an initiative from India's central bank (RBI) and it is non-profit. [1]

This means that a private player's implementation does not become defacto standard.

Multiple factors are aligning to make UPI successful:

1. Massive Mobile (smart phones) & Internet penetration

2. Cheap mobile data from telcos

3. Low cost of payment infrastructure to the banks and shops.

4. Fast clearing of payments (5. Neutral standardisation body with blessings from the central bank

[1] https://www.npci.org.in/who-we-are/about-us

Re: Bank transfers as a payment method

#12
post #9
post #4

This is all great if the currency between the buying and business is the same (ie, USD to USD), but still does not fix transactions between entities of different currency types. In my opinion, this is where cryptocurrency as a payment method for B2B, B2C will shine. No more dealing with foreign transaction fees and conversion fees. Plus the added benefit of not converting your money into an unstable currency (ie, Tur…

Crypto currencies are great for paying people whose names and banking details you don't necessarily know. I've used them to pretty good effect to date and the fact that they have all the drawbacks of cash and are used by criminals too doesn't diminish any of that.

.. wait until you find out what cash is used for.

Re: Bank transfers as a payment method

#13
post #4

This is all great if the currency between the buying and business is the same (ie, USD to USD), but still does not fix transactions between entities of different currency types. In my opinion, this is where cryptocurrency as a payment method for B2B, B2C will shine. No more dealing with foreign transaction fees and conversion fees. Plus the added benefit of not converting your money into an unstable currency (ie, Tur…

You could also just have a bank account with money denominated in USD or Euros or something.

Re: Bank transfers as a payment method

#14
post #3

Wait, didn't Patrick ask for his stuff not to be posted to HN anymore? https://news.ycombinator.com/item?id=29122338 https://news.ycombinator.com/item?id=29041030

Neither of those comments ask for the articles not to be posted to HN. They both ask for people to be "selective in submitting these", which I understand to mean: don't submit every single one indiscriminately, just the ones that would be of particular interest to the HN community.

Ah, so it's marketing then. Got it.

Re: Bank transfers as a payment method

#15
post #6

UPI can potentially be scaled to all countries. I think the biggest USP of UPI is the interoperability between payment apps(Google Pay, Paytm, PhonePe, etc), VPAs(alice@icici, bob@axis, dan@upi, 9848123456@paytm) and banks. One could have an account with bank A, create a VPA with bank B and use that VPA to pay a business through virtually any of the payment apps(GPay, Paytm, PhonePe, BHIM, etc). The main pain point U…

Actually the India-Singapore link will start in 2022 [1]

[1] https://techcrunch.com/2021/09/13/india-and-singapore-to-lin...

Re: Bank transfers as a payment method

#16
post #2

It's a no-brainer. Card processing fees are just too high (2.9% + $0.3). Account transfers bring more flexibility and convenience and costs almost nothing.

If it could work, it would have worked three decades ago. Bank transfers are just a pain in the ass. I still remember all the fees I paid just to transfer money to another bank/another country. Cryptocurrency was considered a way to simplify the problem, but probably didn’t work in this aspect

US? Bank transfers are couple clicks with zero fees in most of Europe.

Re: Bank transfers as a payment method

#18

About UPI: The standardisation of payment interface is done by a corporation called NPCI. It’s an initiative from India's central bank (RBI) and it is non-profit. [1] This means that a private player's implementation does not become defacto standard. Multiple factors are aligning to make UPI successful: 1. Massive Mobile (smart phones) & Internet penetration 2. Cheap mobile data from telcos 3. Low cost of payment inf…

I could do without #5 to be honest. Should be working towards a more decentralized approach.

Re: Bank transfers as a payment method

#19
post #2

It's a no-brainer. Card processing fees are just too high (2.9% + $0.3). Account transfers bring more flexibility and convenience and costs almost nothing.

If it could work, it would have worked three decades ago. Bank transfers are just a pain in the ass. I still remember all the fees I paid just to transfer money to another bank/another country. Cryptocurrency was considered a way to simplify the problem, but probably didn’t work in this aspect

Zelle payment transfers are painless, instantaneous, and free. I can do it from my bank's app or online banking page. Punch in the person's phone number or email, enter the amount, done. They don't even have to accept the payment. And nobody has to describe what the transaction was for; it's highly private, beyond who the money came from / went to and the amount.

The caveat is that the money transfer cannot be undone for almost any reason. There's zero customer/purchase protection. The Consumer Financial Protection Bureau, however, has instructed banks that part of the Electronic Transfer Act requires banks to refund people if the transfer was a result of them being tricked into giving up their account details (it's not clear if this means the money would be yoinked from the recipient.)

I kind of would like the option to enable some sort of confirmation and/or 2FA for a Zelle payment (mainly this means disabling it via the website; my phone provides bio 2FA), and confirmations for receiving a payment. Those are my only complaints with the system.

But that means it can be trusted by people who want to know, for certain, that they've been paid "for real." It's instantly settled, unlike damn near every other form of money transfer system where even if the money seems to be in your account, there's still a days or WEEKS long delay until the transaction can't be yoinked back.

This makes it great for if you're selling a car and about to sign & hand over the title to the other person, for example.

Re: Bank transfers as a payment method

#20
post #16

Earlier quoted context omitted.

If it could work, it would have worked three decades ago. Bank transfers are just a pain in the ass. I still remember all the fees I paid just to transfer money to another bank/another country. Cryptocurrency was considered a way to simplify the problem, but probably didn’t work in this aspect

US? Bank transfers are couple clicks with zero fees in most of Europe.

*EU, that's the point. Outside SEPA, people still use SWIFT.
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