Goliath vs Goliath: Retailers & Banks


Will Truman

Will Truman is the Editor-in-Chief of Ordinary Times. He is also on Twitter.

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3 Responses

  1. Avatar Oscar Gordon says:

    Amazon has a Store Card and a Prime Card. Basically accounts you can charge up with money. Or use as a credit card.Report

  2. fillyjonk fillyjonk says:

    I could totally see some place like Wal-Mart going to their own proprietary payment system, and maybe even offering a pittance of a discount for using it at first. But then going to “use our app or don’t shop here”

    I heard on the news that near Dallas a Wal-mart is opening where pay-by-app is the ONLY option – no cash, no checks, no credit cards. We will all be assimilated eventually.

    (The store has no cashiers but apparently an at-least-minimal human presence, for when the inevitable technological fish-ups happen. Though given my record with self-check-out, I would not expect buying stuff at a store like that to ever go smoothly for me)Report

  3. I’ve only read the quoted portion and not the whole article, so maybe this point is made there. But I suspect one contributing factor for rewards programs now and in the last, say, 10 years, is the low rate of inflation, so that the cards are a way of giving (some) consumers a loan with a “negative” interest rate.

    I’m not sure how well my theory holds out, and I’m not accountant or economist. And of course, the merchant fees (and interest for later than grace period payments) are an important money maker for cards.Report