David Rosenthal: belief

Transcript context

…But transaction value has meaningfully gone up, too. Gross volume is way up. Yes, transaction value. But also, I have to imagine a big part of that is share of commerce that's happening as ecommerce versus traditional commerce. The credit card networks, really are providing a huge amount of value to ecommerce, as you were saying earlier. They are to physical commerce, too. Nobody wants to pay with cash or check anymore these days, but ecommerce, there's no other way that that can happen. Does it make sense that the credit card networks and their associated parties take more value in that world? I think so. There has been downward pressure on interchange for a long time. I think industry average right now is down around 2.24, which is compelling considering we started at 7%. That downward pressure has been easy to give on by Visa for things like in-person transactions with card present. But for a lot of their super high margin online transactions where the growth is, that's where they decide, oh, actually, we have a really high interchange for that area. Visa master of packaging figuring out, how can we take some things and make them more affordable to our merchants or give them away for free while also figuring out, how can we move things around or invent new products that are super high margin that give us a lot of rim to run in the future?…

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