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Comment by BillinghamJ | Hacker News Reader

Yeah, you can. I'd expect PSD2 legislation will all-but destroy CC companies across the EU within 3 years (just for online use initially).

Strong Customer Authentication (SCA) requirements coming into force in Sept 2019 are making card payments increasingly unattractive.

Payment Initiation (via PISPs, which Stripe undoubtedly will become) will offer free, instant, seamless push-based payments where fraud is essentially impossible (and the merchant isn't liable anyway).

Imagine having Cuvva's payment button pop you out to the Monzo app, hit accept, then immediately pop back and have paid. No card networks or fees involved. Just a simple Faster Payment directly from the customer's bank account to ours.

For in-person payments, I'd imagine a similar arrangement could be facilitated via Apple Pay.

May take non-EU countries a while to follow, but they surely will eventually. The days of CC companies are numbered.

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Your example of the payment button is exactly how Dutch-only iDeal works and has adapted well to mobile. The pop-out however is to your own bank's app/website, which works cause there are just 10 banks. Transaction fees? < 0.50 € per transaction

I see all of your points, and agree things are going that way.

But, for me, I will be staying with the cards until the chargeback/dispute schemes match up on bank transfers. I don't want to have to go to the small claims court if I have a problem.

> I'd expect PSD2 legislation will all-but destroy CC companies across the EU within 3 years

I wish. PSD2 will do nothing for consumers and won't hurt CC companies in the slightest. The requirements to actually be able to use the PSD2 APIs are insane. The only companies who will be able to use them are big players like banks, CC companies, large payment processors and large IT companies like Google/MS/IBM/Apple.

People have been saying that for decades and the CC companies are as strong as ever. It's proven to be a great solution and remains the best user experience.

Right but this is actually being caused by very recent legislative changes. Things have started changing very quickly - particularly in the UK.

Credit cards will never disappear as long as they offer the ability to chargeback if the goods are unsatisfactory, and competing systems do not offer that.

In the UK, debit cards can chargeback. While this is currently implemented over MasterCard/Visa network, it's the bank that performs it and there's no reason to expect that would change if something replaced the plastic.

Something similar (but not quite identical) exists for direct debits called the direct debit guarantee.

They already are disappearing in the UK. None of the new banks are offering credit cards.

> The days of CC companies are numbered.

Some sibling comments echo that this is underway in Europe. In America, the credit part of "credit card" is relevant. Many purchases on CC's here are intended as short-term (or longer) loans. (Something like 40% of American credit card holders carry a balance.) Direct debit from a bank account does not (and cannot) fulfill this use case.

Not to mention the fact that people like me who get 2% cash back or points worth as much as 5-10% are going to want to keep using their same cards.

This went away in the EU already. Interchange is capped at 0.3% (0.2% for debit), so there’s no way to provide rewards for cardholders.

Sure it’s sad that we no longer get air miles etc. But the reality is that we never should have in the first place - was a symptom of a nonsensical system.

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