Quick Take on WSJ – V/MA Near Deal w/ Merchants
Merchants have long expressed frustration over card costs, but it’s critical to separate signal from noise. Their issue isn’t with network fees—those average just 5 to 7 basis points and fund the global infrastructure that securely moves trillions. The real pressure point is interchange, often 250 basis points or more for premium rewards cards. That imbalance has shaped years of litigation, and now a potential reset is emerging.
In a significant ruling on yesterday (Aug 7)) U.S. District Court Judge Daniel Traynor struck down “swipe fees” cap that non-exempt banks can charge merchants for debit card transactions. The decision found that the Federal Reserve had exceeded its authority by allowing these fees to be higher than intended by law (ie include provisions for “fraud”).
I’m a reluctant payment historian. Over my 30 yrs I’ve seen many payment projects come and go. The latest is the European Payment Initiative’s (EPI) new wallet, Wero. Billed as Europe’s homegrown answer to Visa and Mastercard, it carries the significant political weight of figures like ECB President Christine Lagarde, who frames it as a “march to independence”. While the political ambition is clear, I believe the business case is fundamentally flawed.
Continue readingA snarky blog. My views on why the role of card networks will grow in the midst of this change (along with Network VAS).
Buckle up buttercups, because the commerce, banking, and payments world is getting a facelift so extreme, it’ll make a Kardashian look like a Luddite. If you thought Web 3.0 and its decentralized pipe dreams were the next big thing, bless your heart. AI and Agentic Commerce are the actual party, and they’re about to flip the table.
Continue readingImpact of Stablecoins on Banks and Central Banks, the Upside for V/MA.
Stablecoins took many amazing leaps in the last 2 weeks. Key developments include
Stimulating community discussion is the #1 reason I write this blog. The intersection of payments, banking, and technology is evolving rapidly, and I’m fortunate to engage with great minds like Dave Birch and new friends like Simon Taylor. Dave’s recent post on crypto predictions got me thinking about a topic I keep coming back to—wallets and networks.
As a former banker, I’m naturally more skeptical about FinTechs disrupting the core of banking. Consumer behavior is incredibly difficult to change, and financial services are among the most competitive industries in the world. If there’s one concept where my perspective diverges from many thought leaders, it’s the power of bank networks (read more). These networks are the foundation of financial transactions, and they continue to define the way money moves.
US Payment Infrastructure is in the midst of completing a major renovation.
Let me preempt the #1 question most of you are about to ask “are card volumes at risk”? Nope, why on earth would banks want to walk away from the most profitable retail banking product in the history of man (see Future of Retail Banking)!?
Let’s talk about tokens. When discussing tokens and payments, it’s important to clarify which category of tokens you’re talking about. Today, I’m not discussing NFTs; instead, I’m discussing card network tokens. It’s hard to believe I’ve been writing on this subject for almost 15 years. For a historical refresh, here are a few of my old blogs
Continue readingBig congrats to TCH, and the 3 banks live with RfP. This is a major accomplishment. As I’ve written RfP is the most important transaction set for RTP.
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To get a view of what this looks like see this consumer support page from
Frank Young – Contributor
What are banks talking about this week? How did Apple’s announcement impact them? While 15bps on 2% of eCom GDV is a nuisance, 15bps on 15% of eComm GDV is an earthquake.