11–18 of 18 posts
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Greg McAdoo - whats the connection?
Rabois seems moderately connected to Sequoia- they've shared in a ton of deals, given he's a prolific / selective angel & he and Sequoia partner Roelof Boetha both worked at PayPal. Don't think there's a formal connection between him and McAdoo.
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They have to give most of that to the credit card companies. I am not sure how much of the 2.75% they get to keep but I would guess less then half, maybe even only a quarter?
I remember reading somewhere the average swipe fee is 1.6% for cards. Don't know how accurate that is but I'm assuming it's not far off.
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I remember reading somewhere the average swipe fee is 1.6% for cards. Don't know how accurate that is but I'm assuming it's not far off.
You're pretty close to the mark - at least for a company doing that much payment volume. Maybe closer to 1.8% or so. There's dozens of variables (debit vs credit, issuing bank, network, international, chargeback rates, etc...) so it's hard to say with any reasonable degree of certainty.
Earlier quoted context omitted.
Greg McAdoo - whats the connection?
Rabois seems moderately connected to Sequoia- they've shared in a ton of deals, given he's a prolific / selective angel & he and Sequoia partner Roelof Boetha both worked at PayPal. Don't think there's a formal connection between him and McAdoo.
Earlier quoted context omitted.
If my math is correct: 2.75% of $10B/yr = $275M/yr. Although they may not be charging 2.75% across whole $10B. I don't think Starbucks would pay 2.75%.
They have to give most of that to the credit card companies. I am not sure how much of the 2.75% they get to keep but I would guess less then half, maybe even only a quarter?
They have at least 500 employees -- figure $100k/ea loaded cost, only possible since I think a lot of those employees are not engineers. That's all of it right there.
They really need to be in the 50b/yr range to be doing well. OTOH, they will probably get there in a year or two, and I don't see their costs going up much.
Earlier quoted context omitted.
You're pretty close to the mark - at least for a company doing that much payment volume. Maybe closer to 1.8% or so. There's dozens of variables (debit vs credit, issuing bank, network, international, chargeback rates, etc...) so it's hard to say with any reasonable degree of certainty.
There's a higher fee for "Card not present" transactions.
Wow, I had no idea they were processing $10b/yr (I thought it was That's getting to the point where they make real money (maybe $50mm/yr?) and have a serious shot at profitability.
Wow, I had no idea they were processing $10b/yr (I thought it was That's getting to the point where they make real money (maybe $50mm/yr?) and have a serious shot at profitability.