Has anyone ever thought about a new type of payment system? There are multiple post in different medias describing of using debits cards for paying for pizza, sandwiches, coffee, etc. As for me that is a sequel of bitcoin pizza! But most of the authors even don’t understand how it works behind the curtain. The only way to move to mass adoption of using crypto debit cards - create a new payment system where merchants can accept payments in crypto from the clients directly. It saves costs and time. Of course, it means another types of POS terminals and many other things, but that is possible. It will exclude acquires services and save expenses for customer - lower banks profits, for sure, and that is why all modern banks might be against this.
The very common understanding of “crypto” is - 'Vendors/merchants don't want to take straight crypto payments because the value fluctuates too widely for them to price their products and services reliably. Crypto is also incredibly insecure to keep, and incredibly expensive to use". But, Crypto here assumes that it could serve like “asset transferring instrument». Banks are the middlemen and that’s it. They transfer assets from clients accounts to other banks where merchant account is. If a new PS allows to transfer assets directly to merchants accounts there is no need of “acquirers” , because the only thing acquirer does is - put money to merchant account. Ah, yes, sure, take commission for that.
So answering for common statements:
- “No value to customer” - customer don’t need to buy anything with crypto. He buys daily needs with his money. Crypto might be an instrument for transnational payments.
- "No value for Vendors/merchants" - Merchant saves IF fee, called Interchange fee, taken by existing payment systems. It is from 0,7% - 5%
- "No value to banks" - sure, agree, banks loose their commission. But, we take care about the banks or about ourselves, customers.
Assuming all of the above I’m sure, in 5-7 years we’ll hear about new era!