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As bitcoin shifts further from the twilight world of hackers, beyond speculators and early adopters towards the brink of "early mainstream", its proponents are confronted with a problem: while merchant usage is on the rise, consumers are so far unconvinced.
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With credit cards, the issuing company, often a bank, bears many of these costs, passing some of the expenses along to merchants through the usage fee.
This means that AmEx, which closed 2003 with $38.5 billion in total managed loans, can grow its card usage and merchant fee revenue without the added burden of rate-sensitive lending.
The app — available for download on Android devices — works by collecting data on texts and calls, merchant transactions, overall app usage, and personal identifiers on a mobile phone to create an instantaneous profile of its potential borrowers.
PayPal continued to help buoy eBay's results, net total payment volume growing 28% to $27.4 billion in the first quarter of 2011 compared to the same period of last year, driven primarily by strong 38% year-over-year growth in its Merchant Services business across global markets, increased merchant adoption and greater usage by customers.
Visa and MasterCard shares tumbled Friday after the Senate voted to cut merchant fees for debit card usage, but the greater impact should be felt by the banks.
The increase in usage can cause merchants to think twice about participating in Groupons or to press Groupon for a larger share of coupon revenue.
That got us to store of value, and now we're moving to medium of exchange (ie payment service provision for merchants and setting-up for transactional usage).
But by rolling it into Groupon Merchants, the company is hoping for more sticky usage and traction by rolling it in with other features.
As the increased usage makes Groupon deals less profitable for merchants, they are expected to demand a larger share of revenue from Groupon.
Merchants are complaining about slow traffic and rising credit card usage.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com