By Larry Chiang
Square and PayPal are innovative.
The end end game will be where merchants get paid to process transactions because 40+% of transactions turn into an immediate receivable for the credit card issuer.
Merchants paying to “LeadGen” and generate receivables for card issuers is like mortgage brokers having to pay Wells, Citi, First Pacific or Chase for sourcing a loan. What I mean is that mortgage brokers get paid to generate receivables. Merchants will be pattern replicating mortgage brokers (eventually).