It’s probably less now though because we’ve seen a macro shift to debit from credit this year, which are cheaper to process and have much lower interchange fees, so processors that charge a fixed fee are keeping more of every transaction.
Outsourcing KYC is a questionable decision though - I’m wondering how much of a black box that is or you get the same info as if you implemented it yourself.
There’s always false negatives for systems like this, and if Stripe wrongly tells you someone is good then are you liable for acting on that decision?
I think there’s going to be some reckoning in the payments industry in general, though, in the next 5-10 years.
Covid has forced more businesses to go cashless and pay the 3% payment transaction toll, which is a hidden tax we all pay.
Could easily see post-recovery legislation scrutinizing payment players who’ve all seen their stock skyrocket this year, similar to what happened after the GFC with the Durbin Amendment (however flawed that legislation is).
DOJ blocking Visa’s acquisition of Plaid feels like a hint of things to come.
However impressive Stripe has become the core issue for me is that it’s made it really easy to work with a legacy entrenched card processing system, and it’s incentivized to maintain that system rather than replace it with something better.
keyword is Treasury eg handling all the payment operations tasks that an in-house corporate treasury team that’s responsible for moving money in and out of the company’s bank accounts might complete