Episode 201
How Bank-to-Bank Payments Could Transform Ecommerce with Eric Shoykhet
Link Money's CEO Eric Shoykhet joins Talk Commerce to explain how his company is circumventing high credit card fees by facilitating direct bank-to-bank payments. He predicts this pay-by-bank model could save merchants 60-80% on processing costs as it gai
October 31, 202329m 40s
Audio is streamed directly from the publisher (2.gum.fm) as published in their RSS feed. Play Podcasts does not host this file. Rights-holders can request removal through the copyright & takedown page.
Show Notes
Visit https://link.money for more information
- Link Money provides a pay-by-bank platform that allows US merchants to accept direct payments from a customer's bank account. This saves merchants 60-80% on credit card processing fees.
- Interchange fees charged by card networks like Visa and Mastercard have been steadily rising, now costing merchants 2.5-3.5% per transaction. This significantly cuts into profit margins.
- Direct bank transfers are ubiquitous in many countries, but fragmented banking in the US has slowed adoption. Still, access to bank data now allows solutions like Link Money.
- Shoykhet predicts major merchants will start offering pay-by-bank in 2024. He expects it to gain up to 10% market share in 5-10 years as a long-term trend.
- Adoption depends on repeating customer relationships where merchants can encourage switching from cards. Subscriptions and repeat purchases are prime targets.
- For online sellers, pay-by-bank presents a way to reduce costs. But interchange is entrenched, so change will be gradual. Consider risks and benefits before jumping in.
- As costs rise, pay-by-bank offers a glimpse into a low-fee ecommerce future. Companies like Link Money are leading the evolution.
Topics
marketingecommerceentreprenuershipmagento