Re:Apple Could Be Working with Goldman Sachs on a Credit Card
by jessaustin on Thursday February 21, 2019 @11:50AM
(#19218171)
Presumably, a properly-implemented retailer wallet app would produce some economic surplus, which could be shared with consumers in order to convince them to participate?
Re:Apple Could Be Working with Goldman Sachs on a Credit Card
by runako on Thursday February 21, 2019 @12:01PM
(#19218290)
Restaurants like Starbucks do exactly this. You pre-buy Starbucks credit that you later use to pay for coffee.
Starbucks benefits because they only incur transaction fees for every (say) $25 pre-paid block, instead of for every $3 coffee. Swipe fees decrease as a percentage of revenue.
They reward consumers via their loyalty program.
Re:Apple Could Be Working with Goldman Sachs on a Credit Card
by dragonwriter on Thursday February 21, 2019 @12:07PM
(#19218344)
> Starbucks benefits because they only incur transaction fees for every (say) $25 pre-paid block, instead of for every $3 coffee. Swipe fees decrease as a percentage of revenue.
They also incur benefits because money in hand and earning returns today for goods and services that will (maybe) be provided in the future is better than money received only at the point of sale.
Re:Apple Could Be Working with Goldman Sachs on a Credit Card
by jessaustin on Thursday February 21, 2019 @12:06PM
(#19218338)
That makes sense, thank you.
This cost is why we saw some retailers attempt to make their own wallets. A wallet app is a bit easier to integrate for the merchants than a new card network. The downside is that consumers don’t care about wallet apps. We want our credit card rewards!