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.