I'm calling it-- 5 years and this will be vaporware. We live in a world where you have to 1) compete with VISA, Mastercard and 2) compete with Bitcoin Lightning Network.
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Zenobia Pay – A mission to build an alternative to high-fee card networks
21–30 of 278 posts
Re: Zenobia Pay – A mission to build an alternative to high-fee card networks
#22[flagged]
Re: Zenobia Pay – A mission to build an alternative to high-fee card networks
#23Earlier quoted context omitted.
Not sure how prevalent this is now, but a few years back I was seeing a lot of "cash price" advertised for stuff that was lower by whatever the merchant didn't have to pay in fees so sometimes cash may not be subsidizing the credit industry.
In a lot of cases there are regulatory or contractual barriers to doing that.
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Re: Zenobia Pay – A mission to build an alternative to high-fee card networks
#24I'm calling it-- 5 years and this will be vaporware. We live in a world where you have to 1) compete with VISA, Mastercard and 2) compete with Bitcoin Lightning Network.
It helps to get clued into what happened with stablecoin legalization and interest this year. Without this awareness one risks looking very foolish.
Re: Zenobia Pay – A mission to build an alternative to high-fee card networks
#25This sounds like a post mortem disguised as marketing material.
Re: Zenobia Pay – A mission to build an alternative to high-fee card networks
#26When you start at the wrong premise, you typically end up in the wrong place. The premise is that credit cards (visa / Mastercard) is broken. When actually it works really well. For starters it works everywhere. Online. IRL. In my home country, in foreign lands. Secondly it costs the consumer nothing. The cost goes to the merchant. If anything the customer gets rewards. Merchants might pay 3%, (and ultimately yes, th…
It costs the consumers. Sometimes indirectly and sometimes directly. I would think that this is the primary motivation to come up with a new scheme.
Credit cards are a huge benefit to customers because of purchase protection, chargebacks, and being able to spend money before you earn it that month. The merchants pay the fees because it gets them sales they wouldn't otherwise get.
Re: Zenobia Pay – A mission to build an alternative to high-fee card networks
#27Earlier quoted context omitted.
Are you saying that even when I pay for something in cash or using debit, because of the possibility I'd use my credit-card the merchant had +3% their price?
Almost but not exactly, any rational merchant would estimate how much they pay monthly in credit card fees and find a way to add that back to their revenue. For most practical cases, the business is started already after the existence of credit cards, so when modeling revenue in your business plan this should already be baked in and the prices you come up with already cover it. So it doesn't mean they increase the pr…
the seller just charges whatever it get can get away with. 3% only has an impact when margins are closer to that percentage
Re: Zenobia Pay – A mission to build an alternative to high-fee card networks
#28When you start at the wrong premise, you typically end up in the wrong place. The premise is that credit cards (visa / Mastercard) is broken. When actually it works really well. For starters it works everywhere. Online. IRL. In my home country, in foreign lands. Secondly it costs the consumer nothing. The cost goes to the merchant. If anything the customer gets rewards. Merchants might pay 3%, (and ultimately yes, th…
> Secondly it costs the consumer nothing. The cost goes to the merchant. If anything the customer gets rewards. Just like tariffs, right? Visa/MC is a +1% income tax on most of the economy.
It isn't - using cards, with fees, is cheaper than cash. I realized that when shops started to refuse cash (even if cash is legal tender and they, by law, _have_ to accept cash). The argument? Cash is too expensive.
Re: Zenobia Pay – A mission to build an alternative to high-fee card networks
#29Earlier quoted context omitted.
> Secondly it costs the consumer nothing. The cost goes to the merchant. If anything the customer gets rewards. Sellers increase the price by the fee amount, savvy consumers with rewards cards can get back around 80% of that price increase, and regular non-credit-card-with-rewards holding consumers just subsidize the whole thing by paying the extra. It's a tax on people without rewards cards.
Are you saying that even when I pay for something in cash or using debit, because of the possibility I'd use my credit-card the merchant had +3% their price?
Cash handling isn't free! You have to pay someone's time to count + reconcile + deposit it, or If you're dealing at any volume, you'll pay an armored car service to collect it. There's inevitably "shrinkage", or else business processes (more time and more overhead) to avoid it.
Cash is king for hiding transactions and avoiding taxes. If that's the situation then I won't say you don't deserve a cut, but for rules-following merchants taking cash isn't any cheaper than paying the credit card fees.
Re: Zenobia Pay – A mission to build an alternative to high-fee card networks
#30Earlier quoted context omitted.
> Secondly it costs the consumer nothing. The cost goes to the merchant. If anything the customer gets rewards. Just like tariffs, right? Visa/MC is a +1% income tax on most of the economy.
It isn't - using cards, with fees, is cheaper than cash. I realized that when shops started to refuse cash (even if cash is legal tender and they, by law, _have_ to accept cash). The argument? Cash is too expensive.
how is cash too expensive?? huh?