Priebatsch beautifully connects
Posted: Tue Jun 17, 2025 8:59 am
Arapid rise of mobile payment providers, the fact that for the first time in 30 years the cost of payment transactions is coming down and what a great stimulus this can be for the economy. Let's try to explain it succinctly.
His starting point is: “What would it mean if there were no more costs for payment transactions?” In short: if there were no more margins paid to banks or credit card companies just for the transaction. To give an idea: conservative estimates state that around 50 billion in transaction costs flow to the payment providers, even for something as simple as a debit card payment. Could that money end up somewhere else?
The rapid rise of many new payment companies via mobile phones (Google for example, but also Starbucks with their app) brings a lot of competition to a market that was traditionally dominated by Visa and Mastercard. These make it possible to come up with a new revenue model for payments. That revenue model is actually wrapped in the statistical value of all those transactions that lies with the payment providers. Think of it as “Foursquare check-ins on steroids”. You know the time, the intention, the value, the place of the payment and so on. That is of great value to a business. So not capitalizing on the transactions themselves, but on the context of the transactions.
By connecting game principles to this data ( gamification remains his thing…) you can use this data brother cell phone list to significantly increase your turnover. For example, you can reward people via game principles by having them return somewhere more often, or by having them return at times when this is less obvious. He gives an example of restaurants that offer a discount when it rains. By using this data intelligently, you can achieve a significant increase in turnover. You then pay a percentage of this additional revenue (so not on the entire turnover) to the payment provider.
His starting point is: “What would it mean if there were no more costs for payment transactions?” In short: if there were no more margins paid to banks or credit card companies just for the transaction. To give an idea: conservative estimates state that around 50 billion in transaction costs flow to the payment providers, even for something as simple as a debit card payment. Could that money end up somewhere else?
The rapid rise of many new payment companies via mobile phones (Google for example, but also Starbucks with their app) brings a lot of competition to a market that was traditionally dominated by Visa and Mastercard. These make it possible to come up with a new revenue model for payments. That revenue model is actually wrapped in the statistical value of all those transactions that lies with the payment providers. Think of it as “Foursquare check-ins on steroids”. You know the time, the intention, the value, the place of the payment and so on. That is of great value to a business. So not capitalizing on the transactions themselves, but on the context of the transactions.
By connecting game principles to this data ( gamification remains his thing…) you can use this data brother cell phone list to significantly increase your turnover. For example, you can reward people via game principles by having them return somewhere more often, or by having them return at times when this is less obvious. He gives an example of restaurants that offer a discount when it rains. By using this data intelligently, you can achieve a significant increase in turnover. You then pay a percentage of this additional revenue (so not on the entire turnover) to the payment provider.