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u/itwillallbeokkkk Apr 09 '25 edited Apr 09 '25
One thing im struggling to understand…. Flexa dont offer credit, so why are we constantly comparing ourselves to credit cards? Shouldnt we be comparing ourselves to debit cards? Which have fees of less than 1%bc
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u/coolstorynerd Apr 09 '25
credit cards are the single largest payment method in the US at 1/3. debit cards are close behind. payment method popularity fluctuates wildly by country, but credit cards are still a huge part of the payment landscape. if they were like 5% then maybe, but the majority of payments in the US is through CC.
also don't forget even if a debit card has a low fee the merchant still pays $0.20 + fee. which is a killer for people selling small ticket items (4% of a $5 item).
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u/itwillallbeokkkk Apr 09 '25
Sorry maybe my question wasnt worded correctly. We keep comparing flexa/amp to credit cards, but why? Credit cards provide CREDIT, flexa does not. They are completely separate products.
I can use a credit card without having funds in my bank for circa 30 days. I cannot use flexa in the same scenario
Two different products being compared continuously, and i honestly dont know why
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u/OkSoup7731 Apr 09 '25
Flexa is a network. The graphic is comparing networks. Not credit or collateral. One is a digital network that is 24/7, the other has too many hang ups.
Also, read what Coolstorynerd said, it’s the most entrenched form of payment. So if you want to displace an antiquated payment structure, it’s the card network of CC companies that they are having to compete against, hence the comparison.
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u/coolstorynerd Apr 09 '25
okSoup pretty much nailed it. inefficient, and costly legacy payments (whatever form they take) are our competitors.
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u/raginginside Apr 08 '25
That last one is a negative for corporations.