this post was submitted on 24 Jul 2023
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Fed’s new instant payment system could be trouble for PayPal, Venmo::The Fed's goal is to connect 9,000 financial institutions nationwide.

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[–] malloc@programming.dev 15 points 1 year ago (12 children)

Honestly, once it reaches critical mass. It will mean the end of PayPal, Venmo et al AND the credit card industry as a whole.

[–] darkfyre@lemmy.world 14 points 1 year ago (4 children)

I think between rewards and actual credit, credit cards will probably be fine, but I'm curious if you think this solves for either of these use cases.

[–] malloc@programming.dev 2 points 1 year ago (1 children)

Credit card rewards are really not worth it. These programs are largely funded by the fees that are charged to merchants which are ultimately passed on to you at time of purchase.

I would much rather have reduced costs of goods rather than have paltry credit card reward programs.

[–] darkfyre@lemmy.world 1 points 1 year ago

Ok, but if this new payment model takes over and there are no fees to merchants, I'm very skeptical those savings will be passed on to buyers. I think at this point credit card processing is pretty well priced in.

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