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Stripe and Advent have made a joint offer to acquire PayPal – sources

reuters.com

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Re: Stripe and Advent have made a joint offer to acquire PayPal – sources

#301

Post by KaiserPro »

jraby3 wrote: post #277
KaiserPro wrote: post #267

Earlier quoted context omitted.

> The future is direct payments without middlemen. direct payment can be good, but thats only part of the service. First, this is not a "card vendors are good" they are a large buisness entity, with their own motivations. Visa/mastercard are outsized and should have proper competition. THe point of card vendors in the modern era is to provide credit and protection for both consumers and buisnesses. Credit is provided…

In the US, Zelle payments are accepted by most major banks and are free and instant. I'm not sure how it could be better than that. It would be nice if more smaller banks used it as well, but the US has 5k different banks.

But thats the point right, Zelle is an opt in. Bank transfers are universal and instant.

Re: Stripe and Advent have made a joint offer to acquire PayPal – sources

#302

Post by Ey7NFZ3P0nzAe »

chirau wrote: post #3

That would be quite a play. Stripe, PayPal, Venmo, Braintree, Xoom all under one umbrella. The Herfindahl-Hirschman Index (HHI) for online card-not-present (CNP) checkout on that is going to be absurdly high and this will take a lot of convincing to beat antitrust. They will probably have to unwind Venmo and Braintree.

https://en.wikipedia.org/wiki/Herfindahl%E2%80%93Hirschman_i...

Re: Stripe and Advent have made a joint offer to acquire PayPal – sources

#303

Post by Ey7NFZ3P0nzAe »

arjie wrote: post #224
chirau wrote: post #3

That would be quite a play. Stripe, PayPal, Venmo, Braintree, Xoom all under one umbrella. The Herfindahl-Hirschman Index (HHI) for online card-not-present (CNP) checkout on that is going to be absurdly high and this will take a lot of convincing to beat antitrust. They will probably have to unwind Venmo and Braintree.

The Herfindahl-Hirschman Index is a measure of the concentration of a market based on the market-share of the firms participating in it. Very much like the Simpson's index that tells you the probability of two organisms in a place being of the same type when randomly drawn. It's just \sum_i^n h_{i}^2 sum of squares of market-share. Enjoyed that. Thanks for the discovery.

https://en.wikipedia.org/wiki/Diversity_index

Re: Stripe and Advent have made a joint offer to acquire PayPal – sources

#304

Post by e28eta »

khurs wrote: post #194
nailer wrote: post #76

Earlier quoted context omitted.

Yes. People are prepared to pay Stripe 1% of all their revenue, same way they're prepared to pay card companies 2%.

1.5% - 3.25% + 20p https://stripe.com/gb/pricing

"1% to Stripe and 2% to card companies" is the grandparent estimating how the Stripe fees that you're quoting are divided up.

Stripe isn't keeping all of that "1.5% - 3.25% + 20p", they're paying the network some portion.

Additionally, instead of using the blended pricing model you quote, they do offer IC+ pricing to (at least some) businesses. I don't know the criteria. On IC+, you're explicitly paying "whatever the network costs" + "fixed Stripe fees"

https://stripe.com/resources/more/interchange-plus-pricing-e...

> Larger and fast-growing businesses often choose interchange plus pricing because it passes through the true cost of each transaction. At high volumes, its net cost is often lower than that of blended pricing. It also gives finance teams true oversight because it shows where all the money goes. That makes it easier to forecast costs, spot inefficiencies, and negotiate or shop around for the processor markup.

Re: Stripe and Advent have made a joint offer to acquire PayPal – sources

#305

Post by thephyber »

root_axis wrote: post #185
edoceo wrote: post #173

Earlier quoted context omitted.

As written Stripe has "morality police" - do you think that is a real thing? We all know it's a risk thing; we all know it's a money thing. And from experience I think it will happen. It will match Stripes current behavior pattern - regardless if their motive is money or morals. In fact, I think it will happen because it's obvious it is about money.

So your prediction is that Stripe will throw away billions for no reason based on your anecdotal experiences. I'll take the bet that you're totally wrong.

Risk mitigation is not "for no reason". It is actually one of the larger revenue generators in the economy.

That said, I wouldn't bet (if I were you) on something without clearly defining the terms. If Stripe simply homogenizes contractual rules that match their contracts with Mastercard, etc, which side of the bet would that fall on?

Re: Stripe and Advent have made a joint offer to acquire PayPal – sources

#306

Post by selicos »

bellgrove wrote: post #285
khurs wrote: post #190

The future is direct payments without middlemen. So consolidation of these legacy players is not unexpected - their revenue whilst sizeable is going to continually decrease every year as people use cards less (Many countries have/are rolling out their domestic app2app or bank2retailer payment system).

As a consumer what is the incentive to not use a card? In North America, at least, there are points programs that heavily incentivize my usage of credit cards plus other benefits like travel insurance. I also trust in the consumer protections that the major credit cards offer. On the flip side, merchants incur a fee but I doubt that even in a world with all direct payments that they would pass any savings along to th…

Many places near me have different cash/card pricing from a % to a flat fee on the transaction. I've used debit cards to pay car repair bills to skip the 3% fee (sizeable on a $2500 repair).

Your incentives are paid by the retailer/vendor, if fees are covered by them. If you're paying that fee, which includes profit for the payment/card processes, you may be losing money using a credit card even with perks like points and cash back.

Re: Stripe and Advent have made a joint offer to acquire PayPal – sources

#307

Post by soerxpso »

chirau wrote: post #3

That would be quite a play. Stripe, PayPal, Venmo, Braintree, Xoom all under one umbrella. The Herfindahl-Hirschman Index (HHI) for online card-not-present (CNP) checkout on that is going to be absurdly high and this will take a lot of convincing to beat antitrust. They will probably have to unwind Venmo and Braintree.

Seeing as payment processing is already a highly regulated industry, I hope that the anti-trust issue is simply ignored, as a consumer. I don't really want to maintain six different payment processor accounts, or have thoughts about which payment processor I prefer. I just want there to be one that everyone uses and that doesn't get in the way. Some countries have a single government-controlled online payment processor, and that seems to work. The ideal American way might be to have a single technically-private-sector highly-regulated one.

Re: Stripe and Advent have made a joint offer to acquire PayPal – sources

#308

Post by charlieyu1 »

selicos wrote: post #306
bellgrove wrote: post #285

Earlier quoted context omitted.

As a consumer what is the incentive to not use a card? In North America, at least, there are points programs that heavily incentivize my usage of credit cards plus other benefits like travel insurance. I also trust in the consumer protections that the major credit cards offer. On the flip side, merchants incur a fee but I doubt that even in a world with all direct payments that they would pass any savings along to th…

Many places near me have different cash/card pricing from a % to a flat fee on the transaction. I've used debit cards to pay car repair bills to skip the 3% fee (sizeable on a $2500 repair). Your incentives are paid by the retailer/vendor, if fees are covered by them. If you're paying that fee, which includes profit for the payment/card processes, you may be losing money using a credit card even with perks like point…

I used to think the percentage fee is a lot (much less than 3% in UK) until I found out all the buyer protection that I’m getting. Literally one single bad merchant is enough for you to lose more

Re: Stripe and Advent have made a joint offer to acquire PayPal – sources

#309

Post by selicos »

charlieyu1 wrote: post #308
selicos wrote: post #306

Earlier quoted context omitted.

Many places near me have different cash/card pricing from a % to a flat fee on the transaction. I've used debit cards to pay car repair bills to skip the 3% fee (sizeable on a $2500 repair). Your incentives are paid by the retailer/vendor, if fees are covered by them. If you're paying that fee, which includes profit for the payment/card processes, you may be losing money using a credit card even with perks like point…

I used to think the percentage fee is a lot (much less than 3% in UK) until I found out all the buyer protection that I’m getting. Literally one single bad merchant is enough for you to lose more

If another payment service offered the same or better protections by default with a lower or zero fee would you jump ship? Or would your bank at least offer that option?

Re: Stripe and Advent have made a joint offer to acquire PayPal – sources

#310

Post by nitwit005 »

soerxpso wrote: post #307
chirau wrote: post #3

That would be quite a play. Stripe, PayPal, Venmo, Braintree, Xoom all under one umbrella. The Herfindahl-Hirschman Index (HHI) for online card-not-present (CNP) checkout on that is going to be absurdly high and this will take a lot of convincing to beat antitrust. They will probably have to unwind Venmo and Braintree.

Seeing as payment processing is already a highly regulated industry, I hope that the anti-trust issue is simply ignored, as a consumer. I don't really want to maintain six different payment processor accounts, or have thoughts about which payment processor I prefer. I just want there to be one that everyone uses and that doesn't get in the way. Some countries have a single government-controlled online payment process…

In the US that would just mean you'd get to enjoy absurdly high fees.
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