Posted in May 2011

Clearxchange – Bank Strategy Perspective

The service is very solid, but I do wonder what the retail wires group must think. Most bank services today allow for transfers to and from accounts I own at other FSIs (we call this A2A). Now I can transfer money to anyone via mobile with no fee (p2p). What about P2B and impact on Debit? For example, eBay purchase? Or how about at a store? If I can send money to a person with no fee.. what prevents use on Debit? Because of Durbin making Debit “almost free” is there an incentive to create a new payment network? Continue reading


Square will “do better” than PayPal? Yeah.. and Pigs Fly

Keith Rabois has been around payments a long time.. and given his PayPal background, his view shouldn’t be ignored. $1B TPV sounds like a big number.. but equates to only $3M in revenue (30bps take rate). PayPal has a 330-390bps take rate driven by its 3 party model (both merchant and consumer have accounts). Yes, that’s right… Paypal makes 10x more revenue for every dollar processed than Square. So for Square to Surpass PayPal, they need $1T in TPV Continue reading