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06/02/22
19:21
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Originally posted by SaltyInvestor:
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Hang on, it clawed back profitability on the MC/Visa network? No, it didn't. I don't think you get how this works. With a BNPL service, you still need to make the repayments with a payment card... Visa doesn't lose anything. Visa only collects money on the processing of transactions via credit card and interchange fees. In fact, Visa only benefits more if BNPL encourages people to spend more. The losers here are BANKS which can't charge interest on the credit card balances. That's where Afterpay makes a good chunk of money - late fees which otherwise would have been charged by banks. I invest in Visa so I've got a grip on their business model.
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Yeah you are right. MC/visa network still used by BNPL So I should have said clawed back from bank interest charges like you pointed out