Payments, a “Dirty” Low Margin Business, Suddenly has so Much Interest. Why?

If you query the Facebook graph data or Twitter feeds via Topsy, you will find people discussing the cool Starbucks app, Square card readers, Google Wallet, Venmo and Apple Pay when it comes to payments. But there is a lot more in the space that has greater impact yet gets less talked about. We look at some of these segments today in this article.

It is true that for a very long time, Payments was considered a low margin business with payment processing companies establishing their large talent bases in Arizona and Texas. Every penny saved was important and innovation/R&D was discussed only rarely. You got only few pennies and percentages on each transaction and that you had to do huge volumes of transactions to be having a decent cash flow. Not to take away anything from those Fintech' companies - there was certainly incremental innovation happening at a pace good enough to compete. Nothing groundbreaking though. Now fast forward to today: Venmo, Starbucks, Google Wallet and Apple Pay have gotten the end customer excited about new ways to pay and that consumer enthusiasm is making te ...

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