FedNow Hurdles and Opportunities

FedNow will be successful in non-card flows. Its opportunity in eCommerce and card flows is low given that debit is rarely used in eCommerce, and that the cost of debit is very low ($0.12 w/ Durbin routing), the investment case is very hard.  Further degrading the opportunity is the need for all participating banks to respond to RfP authorization. Continue reading

Part 2 – The Power of Bank Networks

Last year I made a provocative statement “Visa and Mastercard have NEVER lost share in a market where they have gained a foothold”. Today I will work to give a basis as to why.  V/MA continue to succeed despite the efforts of regulators and Nobel winning economists. Why? Continue reading

PayPal – ?Super App?

Paypal has clearly won in the massive shift to eCom/mCom during the pandemic. A time where 10 yrs worth of consumer behavior change was compressed into 18 months (behaviors which will stick long-term). However, the future growth story must ride on something else AND Paypal must prove it can generate improving margins within that growth Continue reading