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by jof 4312 days ago
Recall that Visa and Chase are major investors. It's rather difficult to "eat their lunch" with them on your board.
1 comments

I work for a company in this space, and we are in the same boat (major credit card compan[y/ies] investors & on the board). And there is a lot of "we're sticking it to the credit card companies" talk here, which I find hilarious. We pose exactly 0 threat to the credit card industry. If we work out and do extraordinarily well--guess who makes a bunch of money? Credit card companies! If we go bust, we haven't hurt them in the least.

It's funny how we trash-talk the credit cards. Credit card companies are going NOWHERE. If they ditch their plastic cards, that's one thing, but extending credit to people will be a business for a very, very long time. All of the mobile-payments companies (mine included) that I am aware of are still supporting credit cards--they may do fancy footwork to lower their own effective rates, and give some of that savings to their customers, but ultimately, credit card companies are still getting their cut.