Should mobile payment platforms charge merchants or remain free to use?
Payments
Asked by Question Bot07/Dec/20121 answer
1 Answer
F
Faisal Khan
Answered 07/Dec/2012
Money has to be made by someone in the system.
If the transaction does turn up free for the merchant, then the company who is providing this would seek a way to keep the money float for a few days to earn some income on it.
If it seems like no one is making money, you're not looking hard enough.
The idea is not far fetched one. Barrier to entry is the fees and transaction costs, etc. If they can be eliminated Then either someone is okay with the loss of this income (hard to swallow), or the fees has been moved behind the scenes that is not immediately visible to the merchant.
If the transaction does turn up free for the merchant, then the company who is providing this would seek a way to keep the money float for a few days to earn some income on it.
If it seems like no one is making money, you're not looking hard enough.
The idea is not far fetched one. Barrier to entry is the fees and transaction costs, etc. If they can be eliminated Then either someone is okay with the loss of this income (hard to swallow), or the fees has been moved behind the scenes that is not immediately visible to the merchant.