An Investor’s guide to the ever-changing payment processing landscape.

There are two “Banks” in every transaction.

  • Interest from the credit card loans,
  • Membership and other Fees, and
  • Interchange fees. (more on this below)

The “Payment Networks” are the glue.

  • Banks pay the networks based on volume processed.

The “Payment Processor” builds the terminal.

  • On average 2.9% + $0.30.

The “Payment Application” uses the terminal.

  • a subscription fee, or
  • a software license fee.

Time to talk about what’s been changing

Mobile phone providers focus on card safety.

  • back-end contracts with the banks and credit card networks.

Alternative payment solutions innovate on the method of payment entirely.

  • Embedding extra cost for the consumer,
  • Charging the merchant a similar fee to credit cards, and
  • Charging credit card fees + additional solution fees.

Faster checkout providers aim to speed up onboarding and share onboarded customers from merchant-to-merchant.

Alternative marketplaces aim to be the “big box stores” of commerce online.

  • charge the sub-merchant a percentage on the price of the product.

Whym stands out from all of these newcomers.

Whym is taking a strong position that shopper behaviors are changing.

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