But if you find a way to debit peoples bank account with 0 fees and 0 default risk and <5s latency, I believe you could potentially establish a reasonable super-low-fee payment provider and have a clear value proposition for merchants.
The problem is: Getting merchants and customers on board.
I’m personally super interested in this topic. If anyone what’s to chat about this: mail@konstantinschubert.com
My personal interest is more aligned with crypto (back in 2008) where I would like to see a transation layer which is independent... feel free to use banks or not, invest or not, but the way you move moeny about is shared and not owned by anyone.
The hard one here is acceptance by customers. No merchant wants to clutter their checkout page with a button that nobody understands. Or worse, have customers get trapped in a dead-end payment process.
Just because it’s rational to pay off a monopolistic rent seeker doesn’t mean that the rent seeker generates economic value corresponding to the monopolistic rents they’re extracting.
OK, but then there's the third side: banks.
> find a way to debit peoples bank account with 0 fees and 0 default risk and <5s latency
Banks.
Exactly!
(And's that speaking as former CTO of one of the largest banks in the world.)
I was responding to:
>> "ultimate two sided marketplace"
Banks' role in anyone's attempt to solve this is why one can't forget there are three sides, not two, to getting this right. Get the right intro and a bank might even want to foot your bootstrapping bill given how challenging things can be internally.