Well, is not much clear to me the real advantage of digital wallet vs card (except for the merchant that pays lower interchange fees)
If a client is not eligible for a charge card, he\she can always get a debit card which works exactly as a standard card, accepted worldwide, reliable, etc…with the only difference that must be charged at first
A digital wallet works like a debit card in the sense that the wallet must be charged… unless… the digital wallet issuer or the bank or any other entity takes the credit risk (i.e.: for the BNPL)… but to take the risk the client needs to be assessed and if he\she is not eligible for a charge card is also not eligible for a BNPL
So to cut the story short, looks like to me that a digital wallet only brings benefit to merchants as, we know, they will pay a lower acquiring fee… this is the reason why in Italy all merchants push the client to pay with Satispay (now on the hype in our country) … nothing else
This whole story of BNPL reminds me the 2007\2008 subprime scandal… if you grant money to people who are not eligible sooner or later it will come back to you in the shape of a gigantic sh.t-storm!
Love this Rich. I feel like SEA isn't talked about enough.
It's like the region is skipping the card/cash stage and going straight for the digital wallet, but is maybe running before it can walk? I worry that it might end badly, especially if it becomes a gold rush for predatory companies.
I wrote a white paper on this exact effect against the forex industry, if you find it useful let me know!
Well, is not much clear to me the real advantage of digital wallet vs card (except for the merchant that pays lower interchange fees)
If a client is not eligible for a charge card, he\she can always get a debit card which works exactly as a standard card, accepted worldwide, reliable, etc…with the only difference that must be charged at first
A digital wallet works like a debit card in the sense that the wallet must be charged… unless… the digital wallet issuer or the bank or any other entity takes the credit risk (i.e.: for the BNPL)… but to take the risk the client needs to be assessed and if he\she is not eligible for a charge card is also not eligible for a BNPL
So to cut the story short, looks like to me that a digital wallet only brings benefit to merchants as, we know, they will pay a lower acquiring fee… this is the reason why in Italy all merchants push the client to pay with Satispay (now on the hype in our country) … nothing else
This whole story of BNPL reminds me the 2007\2008 subprime scandal… if you grant money to people who are not eligible sooner or later it will come back to you in the shape of a gigantic sh.t-storm!
Love this Rich. I feel like SEA isn't talked about enough.
It's like the region is skipping the card/cash stage and going straight for the digital wallet, but is maybe running before it can walk? I worry that it might end badly, especially if it becomes a gold rush for predatory companies.
I wrote a white paper on this exact effect against the forex industry, if you find it useful let me know!
https://www2.paysafe.com/l/929453/2023-09-19/km6h6/929453/1695138312FZikDqZs/Whitepaper_Paysafe_Retail_forex_development_in_Southeast_Asia.pdf