[conorgil145]

Couldn't Square or some other "big" player come in and implement payments via bank account and simply put Kash out of business? I know nothing of the domain, but it seems relatively straight forward to do, no? PayPal already let's me send money to any individual with an email address (and maybe a PayPal account?), so couldn't they just change their fees to 1% flat for businesses tomorrow?

What am I missing? Thoughts?

[maxbrown]

Sure, a big player could implement this model, but they may not take the risk or make the investment if their current model is successful.

Also, it certainly doesn't mean they'll put Kash out of business if they do (and if the Kash team succeeds). For example, I don't expect Amazon Local Register to put Square out of business.

[conorgil145]

Fair points. I guess I struggle to see the benefit as a user. I just glanced at their site and they do list a few benefits for users including "fast and easy payment, perks and rewards for using Kash, manage spending better with daily limits, no bank fees or interest charges". These could be interesting, but as a user I don't know that the incentives are there for me to stop using my CC which I am already accustomed to. I get points from CC purchases, use Mint to set budgets, and do not see bank fees or interest charges because I pay each month in full. I guess I am just not the target market for Kash.

However, I clearly see the many benefits for the retailer. They are saving money on transaction fees, avoid charge backs (maybe?), get paid more quickly, and is free for businesses charging under $100k.

I think in the back of my mind when I posted my previous comment was the classic chicken-and-the egg problem. Lots of benefits for retailers, but only if customers use it. Possible benefits for customers, but only if retailers accept it. I think that many of the other larger existing players in this space already have most of the infrastructure in place (eg, Square) and have brand recognition to boot. So, I see a very large uphill battle for Kash in this space with their business model. However, as you point out, it isn't necessarily a zero sum game and Kash could exist along side competitors. It will be interesting to see if they can differentiate themselves in some way and/or execute better in some way.

[baudehlo]

You're not missing anything. RBC has such a service though the entry fee to participate is high and they don't advertise it. It has a traditional enterprise sales cycle.