[namibj]

PayPal is around 2-3%, credit/debit around 0.5-5% depending on where and whether you have a physical card reader. ACH is, to my understanding, cents or even less than one, but suffering from an utter lack of security/authentication.

[biztos]

Meanwhile, in the Eurozone, electronic cash and wire transfers have had fees of exactly €0.00 for many years, and my online-only bank does “instant” transfers (takes a few seconds but that’s mostly the app latency) up to €2000 for the same price.

The transaction-cost problem has many possible solutions.

[iudqnolq]

CashApp/Venmo is free from the perspective of the average American if they have a debit card. (They make money off data and credit card fees).

[namibj]

Last I looked, they did not seem to be free for commercial use (including cases with just B2C transactions).

I see these as worse, because they suggest to the average consumer American that sending money is free, reducing pressure on a proper low-delay settlement system with sufficiently low fees to allow users to ignore the fees in most instances. Say, 1ct + 0.05%. (That's AFAIK comparable to SEPA's version of electronic checks (i.e., asynchronous pull), and fees for low-latency push shouldn't exceed 0.2%, either. With delayed settlement, even push should allow the very low fees, though.)

[OrlandoHakim]

Correction: They make money by selling your transaction data to hedge funds and advertisers for profiling and targeting.

[iudqnolq]

As I said, data and credit card fees.