Legal Seminar, Denver, CO
What’s Not to Like?
• Social policy questions. – Are high‐end customers getting benefits financed by all purchasers? – Are decisions to limit payments to electronic means biased against some demographic groups? • Immigrants? Youth? Privacy advocates? • Economic strata? (Are electronic payment methods really out of reach in an environment in which nearly everyone has a cell phone?) (See Nizan Pakin’s Chapter 9) – Privacy regulation (CA legislation 6/28/18) may also have implications here that have not been considered.
Innovators
• Cost‐Based.
– ACH systems. • Dwolla • Zelle • Venmo – Credit card systems.
• Adyen provides an example of a firm delivering “back office” cost savings for merchants who accept payment cards. • Small efficiencies can add up if volumes are large and when merchants feel competitive pressures.
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