The payments system in the US is ripe for disruption. There is huge rent-seeking, the merchants are not happy (fees too high), nor are the consumers (who loves their credit card company? Show of hands please!), and innovations like better security or micropayments have been actively sought for YEARS and are hardly any closer.
But I'm not sure WHAT is going to disrupt it. Because many have tried. T-Mobile had an established relationship with a large number of customers, had retail locations throughout the country, and has the in-house technical skills to be capable of putting together a decent product. And they're not even doing as well as someone like Square.
This one is still a wide-open opportunity for someone.
Yes. It's amazing that ~3% gets clipped from every credit card transaction. I am surprised that nobody has come in for 2% or 1.5%. All the so-called disruptors I've seen have just attacked the fees on top of the 3%.
But I'm not sure WHAT is going to disrupt it. Because many have tried. T-Mobile had an established relationship with a large number of customers, had retail locations throughout the country, and has the in-house technical skills to be capable of putting together a decent product. And they're not even doing as well as someone like Square.
This one is still a wide-open opportunity for someone.