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China’s Payment Apps Give U.S. Bankers Nightmares

bloomberg.com

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Re: China’s Payment Apps Give U.S. Bankers Nightmares

#121

Post by TACIXAT »

driverdan wrote: post #119
TACIXAT wrote: post #114

Earlier quoted context omitted.

I bet a lot of those go to rewards. Also, cards are pretty insecure. Maybe a phone with a lock on it to prevent physical theft and use, and all the data you would have associated with each transaction would make a great fraud detection system.

> I bet a lot of those go to rewards. This is the kind of thing you should know off the top of your head if you're interested in competing with them.

Yea, that's one piece of information I haven't found. I'll have to look if it's in SEC filings for credit card companies.

Re: China’s Payment Apps Give U.S. Bankers Nightmares

#122

Post by jsmith99 »

dzonga wrote: post #76
stcredzero wrote: post #58

Earlier quoted context omitted.

The critical difference is that in China, the apps effectively are the banks, whereas in the US, regulatory capture ensures that the banks stay the banks and it's the app's problem to figure out how to interface with them. My wife works in banking, for a small local bank. The regulations are heavily skewed against smaller banks. Regulations around consumer mortgages seem to be designed to keep smaller banks out. Unle…

smaller banks also provide protection against 'too big to fail' syndrome. They won't over leverage risk.

Not exactly. The savings and loans crises of the 80's was driven by a sector of traditionally small, community banks, fueled by deregulation.

Re: China’s Payment Apps Give U.S. Bankers Nightmares

#123

Post by volgo »

frockington wrote: post #88
khuey wrote: post #25

Earlier quoted context omitted.

Because we like our 2% credit card rewards.

After and afternoons worth of research I've manged to get ~4% back on every purchase. As long as you have a decent credit sore you can really optimize your "cashback" and beat the fees. If you're one of the churner people I'm sure you could do much better

How do you get 4% cash back without using any of those airline points? I mean straight up cash back

Re: China’s Payment Apps Give U.S. Bankers Nightmares

#124

Post by ac29 »

TACIXAT wrote: post #99

I applied to YC to bring this idea to the US (rejected). Credit cards are our primary form of digital money and their fees are excessive. The basic design was ACH money into the wallet, transfer money between balances for ultra low cost (1%), ACH money out of the wallet. The difficulties are regulation. Doing this would make you a money service business and banks really don't want to touch that. Plus it costs a nice…

So its more expensive than debit cards (0.05% + 21c) to the merchants, and has no reward incentive for the consumer (1-1.5% back in cash or points is typical). Who was it supposed to appeal to?

Re: China’s Payment Apps Give U.S. Bankers Nightmares

#125

Post by apocrypher »

jsmith99 wrote: post #122
dzonga wrote: post #76

Earlier quoted context omitted.

smaller banks also provide protection against 'too big to fail' syndrome. They won't over leverage risk.

Not exactly. The savings and loans crises of the 80's was driven by a sector of traditionally small, community banks, fueled by deregulation.

Specifically, what you explained stoked the fire, but what poured gas on it and simultaneously kicked the embers about the room, was Rudolf Guiliani taking RICO to make his case against Mike Milken, actually first of all Mike's far more vulnerable brother was indicted, but that aside Guiliani forced Drexel to shut it's trading desks, which drained the market for the junk bonds which had allowed so many tiny thrifts to engorge themselves, and without any mark to market -the whole market consisting of Drexel making two ways all on it's lonesome (who else had a clue what was in those bonds?) - the multitude of vastly bloated regional S&L's couldn't post their accounts, and simultaneously all went belly up.

Not being funny, but Guiliani forced the whole mortgage banking business into insolvency to make a point that some still think was Vendetta. Whatever the case, Guiliani forced a vast capital market to halt, for no reason I've ever learned, and handed a four trillion dollar bill to the taxpayer, for kicks. No wonder Trump likes his advice.

Re: China’s Payment Apps Give U.S. Bankers Nightmares

#126

Post by skinnymuch »

crooked-v wrote: post #36
gruez wrote: post #29

Earlier quoted context omitted.

GP mentioned: >free transfers between bank accounts does it really matter if it was done through some third party service?

Absolutely, given that Paypal can freeze your money indefinitely for arbitrary reasons (and has a long history of doing so).

Does it for consumers? I thought it’s only for sellers. That’s also been my experience.

Re: China’s Payment Apps Give U.S. Bankers Nightmares

#127

Post by AmericanChopper »

stcredzero wrote: post #58
chatmasta wrote: post #32

The critical difference is that in China, the apps effectively are the banks, whereas in the US, regulatory capture ensures that the banks stay the banks and it's the app's problem to figure out how to interface with them. The reason the banks are scared is not because "banks" are not involved. They're scared because these apps have successfully vertically integrated to become banks. This is the logical next step for…

The critical difference is that in China, the apps effectively are the banks, whereas in the US, regulatory capture ensures that the banks stay the banks and it's the app's problem to figure out how to interface with them. My wife works in banking, for a small local bank. The regulations are heavily skewed against smaller banks. Regulations around consumer mortgages seem to be designed to keep smaller banks out. Unle…

All regulations are skewed against smaller companies. There's a reason the US has a vibrant startup culture, and Europe doesn't.

Re: China’s Payment Apps Give U.S. Bankers Nightmares

#128

Post by PickledJesus »

dkasper wrote: post #35
mixmastamyk wrote: post #13

Earlier quoted context omitted.

Hmm, most other countries have free transfers between bank accounts. It's just the US (maybe a few others) still stuck in the stone age.

ACH bank transfers are free in the US too, just takes a few days. Personal transfers with Venmo or paypal are free too in most cases. The fees are for credit cards which make up almost all online transactions and have fees everywhere in the world.

The EU limited fees to .3% on credit and .2% on debit cards, and made charging the consumer card fees illegal everywhere though. That's a big improvement on what was otherwise ~3%

Re: China’s Payment Apps Give U.S. Bankers Nightmares

#129

Post by wakkaflokka »

pishpash wrote: post #108
frockington wrote: post #80

Earlier quoted context omitted.

Most banks are using Zelle now, all but instant in my experience

Zelle is restrictive, daily limits are quite low. It's also not always instant, depends on how much risk your bank considers you.

I ran into this issue today. Frustratingly low limits ($1000) for my bank.

Re: China’s Payment Apps Give U.S. Bankers Nightmares

#130

Post by amrx101 »

chatmasta wrote: post #32

The critical difference is that in China, the apps effectively are the banks, whereas in the US, regulatory capture ensures that the banks stay the banks and it's the app's problem to figure out how to interface with them. The reason the banks are scared is not because "banks" are not involved. They're scared because these apps have successfully vertically integrated to become banks. This is the logical next step for…

From India here. Same can be said for India. I do my all banking transactions from my phone. Also there are couple of banks who are only app based like DBS. I rarely visit bank.
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