Judged:

5

This story is a joke, right?

Amazon/Apple/Google/Square/Who ever Payments …

Online or at physical point-of-sale, via plastic or mobile phone—from the merchant’s point of view—all these “non-bank” providers suffer the same severe handicap that eBay’s clunky PayPal suffers: none have interactive access to buyers’ funds in retail banking debit accounts, nor to retail banking credit accounts as do have the MasterCard and Visa “bankcards”; their only access to funds is as retail bank Credit Card Merchant Account operators (which is what “PreyPal” claims to be when it wants to appear not to be operating as a “bank” in its own right) via their own retail banker (Wells Fargo in the case of “PreyPal”).…

Even if any of these middlemen make use of direct debits via the ACH system (as “PreyPal” prefers to do to more cheaply access buyers’ funds), the access is not interactive: there is no immediate acceptance of the debit by the bank nor any guarantee that, the following day, the bank won’t reverse the debit due to an insufficiency of funds; direct debit via ACH is simply not a suitable medium for physical point-of-sale transaction payments; the only safe route for point-of-sale transactions (credit or debit) is via a retail bank Merchant Account with its interactive linking to the retail banking system …

These “pretenders” are all parasitic middlemen, an extra superfluous layer that, in the main, rides precariously on the back of the retail banks’ existing systems; they make their money out of the difference between what the banks/MasterCard/Visa charge them and what they then charge their merchant customers; therefore, their services, invariably, are going to be dearer, or are unlikely to be cheaper; anyone that thinks otherwise has been drinking too liberally of the disingenuous nonsense that continually flows from the eBay Dept of Spin …

“PreyPal”, however, is unique in that it operates a “pretend” bank—the unlicensed “bank” they have to hold onto merchants’ receipts cash flow, and the bank they don’t have when the banking regulator comes sniffing around. That “PreyPal” manages to skirt wholly around US banking regulation while operating this clunky, unregulated, non-FDIC-insured,“pretend” bank, frankly, defies belief; possibly it’s due to the same bureaucratic laziness/corruption that allows eBay to knowingly and calculatedly facilitate demonstrable, massive, blatant, auction fraud on the consumers of the world …

Regardless, if any of these middle-men players think that they are going to take other than micro-fractions, if any, of the payments market away from the MasterCard and Visa “bankcards”, I think that they are dreaming, or possibly they have accompanied Johnny Ho on one too many his many hallucinating trips with Alice down the rabbit hole to Wonderland …

For buyers,“digital wallets” undoubtedly are the way of the future for payments, and with the recent arrival of the professional digital wallets from MasterCard and Visa, all these pretenders—with the exception of where they are effectively mandated/integrated into an online marketplace—are now effectively redundant …

And, with respect to physical point-of-sale transactions by such pretenders (Square excepted, as it offers a hardware answer to a particular problem), can I simply invite readers to, next time they visit The Home Depot, ask a cashier how “Pay Here With PayPal” is going—LOL … bit.ly/UVXx53

Hello "MasterPass"; goodbye clunky "PreyPal"—it has not been nice knowing you ...