[hakfoo]

There are some other issues, but I'm not sure they're fixable by technology alone:

* Getting from zero to accepting payments is long and complicated. Some of this can be streamlined, but how much of it is limited by anti-money-laundering regulations?

* The concept of "you can initiate a charge as long as you have about 40 bits of information, and can do so for 2-5 years or until the card is revoked" is a model doomed to fraud problems.

* There's no legal requirement that all potential legal merchants get serviced or at fair rates. See the recent discussions about payments for the porn industry; plenty of processors will not want to work with gun dealers.

* There's no solid standardization, so you can't shop around providers freely because changing who you buy from may mean you have to replace your swipe machines or rebuild your cart to talk to the new vendor's gateway of choice.