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”).
As a Banker, Founder and Payment Historian who has spent too long watching icebergs melt, I’ve seen many technologies promise to upend the banking industry. Most have been evolutionary, not revolutionary. But the advent of digital dollars, particularly consumer-facing stablecoins, are unique. Payments are the core of retail banking and profitability. Payments are a networked business, not just in card but in every consortium and association. As I outlined in The Power of Bank Networks, these networks are the engines that drive economies and how banks connect to the environment. For my colleagues in banking and payments, understanding how (or if) stablecoins impact payments is very important.
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My good friend Dave Birch wrote a piece in Forbes last week on Account to Account transfer threat to V/MA. I wanted to provide an alternate view. This will likely be a multi-part blog.. today I’m starting with the consumer and the merchant (from a US perspective).
No new information for my frequent readers, just pulling together some of the latest data (see PIX below).
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I’ve had quite a few inbound calls on Durbin and Debit in eCom so I thought it was time for a short blog. Note this is my 90% confidence view talking to 3 of the top retailers and 2 of the top processors.
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