anon589 (u/anon589) - Readit News

anon589 commented on Stripe: Platform of Platforms stratechery.com/2020/stri... · Posted by u/razin

Roughly 1.8% of a credit transaction fee goes to the bank that issued the card. About 15-30 bps go to the card networks, much higher for cross-border. Acquirer and PSP fees are minimal in comparison. Legislation would be more effective in lowering overall merchant cost by targeting banks and networks.

anon589 · 5 years ago

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.

anon589 commented on Stripe: Platform of Platforms stratechery.com/2020/stri... · Posted by u/razin

silvestrov · 5 years ago

For countries which have good customer protection (), use of credit cards online can be reduced to just a transfer between 2 bank accounts.
That should be a lot cheaper than current fees, especially for large amounts, as you cut out a lot of expensive middlemen. It will be interesting to see if Stripe or Apple does this first.
It seems like 2 opposing fights are going on:
1) Mastercard and VISA tries to be the only methods of payments by trying to get rid of all national payment cards.
2) EU seems to want to reduce payment fees, but doesn't want customers to know the fee. I don't think they are ready to want the fees to be much lower.
Nice fees also allow for nice lobbying.
(
) e.g. in Denmark business's are not allowed to draw money from card before the goods are shipped

anon589 · 5 years ago

the Fed Reserve has been working on FedNow real time payments for a few years now.

That could be a great achievement for replacing ACH and debit.

anon589 commented on Stripe Treasury stripe.com/treasury... · Posted by u/timf

joshuakelly · 5 years ago

There's a reason "marketplaces" get a call out on this landing page. Every single startup that has to manage buyers and sellers ends up needing to implement their own bespoke "treasury" operations. There are other players in this space (Modern Treasury for example), but obviously the distinct Stripe advantage is integrating with the payment stack.

This would have saved years of development efforts and maintenance on treasury operations for my team at a previous gig (in the live events/ticketing space, who are probably going to read this comment - hi guys).

anon589 · 5 years ago

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?

anon589 commented on Stripe: Platform of Platforms stratechery.com/2020/stri... · Posted by u/razin

boberoni · 5 years ago

> Stripe is enabling standardized access to global banking capabilities via APIs...

The API is Stripe's core competency, and they've been excelling at it for a long time.

I think one thing that Stripe does very well is allow developers to focus on developing. Setting up a business relationship with financial institutions is cumbersome and the legal details can be daunting.

While their engineering reputation is high quality, I'm curious to know how much of Stripe's headcount is in lawyering and policy work.

anon589 · 5 years ago

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.

anon589 commented on Stripe Treasury stripe.com/treasury... · Posted by u/timf

nojvek · 5 years ago

The landing page doesn’t really explain what kinds of problems Treasury solves (may need some customer education since it’s so new)

IIUC this is useful for marketplaces like Lyft/Uber/Shopify to automatically provision bank accounts for drivers and have money deposited in there? The value add is faster payouts?

Can I use this as a replacement to plaid api? I.e open a bank account through stripe and use that as a way to do finance analytics? What are the banking fees?

Basically: which customer audience is this targeting ? and what headaches does it solve for that audience?

anon589 · 5 years ago

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