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Posts
14
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240
Joined
2 yr. ago

  • We are talking about businesses, right? They want to maximize profits, not giving money away for free... One dollar given away for free is one dollar less for the share holders. And for them, that's pretty much the worst case.

    The credit card company gives you 5% money.

    Now, the credit card company has a problem. It loses money.

    The credit card company has an idea: Why not making the real customer (the shop) pay more? Prices for shops to use the payment method rise now.

    Now, the shop has a problem. It's losing money and they think: What can we do? They rise the prices of the items they are selling. And who pays the higher prices in the end? You. And you think, you made a good deal.

  • Yeah, I have a credit card that pays me back 5% cash on grocery store purchases. It would be stupid NOT to use it

    Groceries + free money.

    I'm reading this as a European and have questions... We all know that there is non free money. So, what's the business model? Making you use the card more by giving you "free" money and making the shops pay more to use the payment service, so that the shops then increase the prices, so that you pay the same as before (considering increased prices and cashback), but are now using the payment system a lot more?

  • The 15 seconds are more like a maximum. It's usually faster. Taking out you phone and maybe entering the phone PIN, opening the banking app and entering a PIN for that takes some time, too.

    The advantage that Paypal still has: It's like a social network. People are connected and it might be easier to use it instead of first asking people for their IBAN code to send the money...

  • SEPA is actually what we had so far. That is how the employer sends you the money. That's how you pay rent. That's how you pay off debts. That's how your insurances take money from you.

    SEPA instant payments is what's new and it allows to transfer money to someone in under 15 seconds. It existed for a few years, but usually cost money and was not even available for all banks. That's changing now. Step 1 is making it free and force all banks to offer it. Step 2 will be replacing the old, slower system with it completely.

  • Paypal was the fast way to transfer money until 2024 in the EU.

    But the EU has recently made it mandatory for banks to offer free SEPA instant payments. 15 seconds to send up to 100k as far as I know.

    BTW: Look at the share price and how it went down and did not recover...