A good “FedNow” or instant payment provider can easily disrupt the debit and credit card processing companies. At most, businesses charged 5-10 cents per transaction.
No more dealing with credit card network fees. Chargeback fees. Exchange fees. Issuing bank fees. Premium card fees. Just a simple 5-10 cent per transaction. Only need a US bank account.
Spoiler alert: it has not eliminated the need for credit cards. The credit card system has a lot of flexibility and integrations to make for a superior user experience in a number of situations. For example, a lot of banks let you create virtual cards for specific purposes (eg: I have one for all my online subscriptions, and another for merchants I've not dealt with before). Not to mention Apple/Google Pay and their integration into basically every single online payments platform.
Great statement and one that needs to be seriously considered - would DORA regulation in the EU address this I wonder? Its a monster piece of tech legislation that SHOULD target this but WILL it - someone should use todays disaster and apply it to the regs to see if its fit for purpose.