Discussion Overview
The discussion centers around a startup called Dwolla, which aims to eliminate the need for credit cards in online payments. Participants explore the implications of this payment system for consumers and businesses, comparing it to existing alternatives like PayPal and discussing its potential impact on transaction costs and consumer behavior.
Discussion Character
- Debate/contested
- Technical explanation
- Conceptual clarification
Main Points Raised
- Some participants highlight Dwolla's low transaction fee of $0.25 compared to credit card fees, suggesting it could benefit businesses significantly.
- Others argue that the advantages primarily favor business owners rather than consumers, as the cost to the consumer remains unchanged regardless of payment method.
- A few participants express skepticism about Dwolla's innovation, noting that there are already many alternatives to PayPal and questioning whether Dwolla will gain widespread adoption.
- Concerns are raised about the potential for new payment technologies to encourage increased consumer spending, referencing studies on payment methods that lead to higher spending.
- Some participants share personal experiences with existing payment systems, arguing that traditional methods like checks and debit cards are sufficient and expressing reluctance to adopt new technologies.
- There is a discussion about the hidden costs associated with credit card transactions that consumers may not see, with some suggesting that a flat fee could be beneficial overall.
- Participants also speculate on the potential reactions of credit card companies to Dwolla's model and whether it might lead to renegotiated rates for merchants.
Areas of Agreement / Disagreement
Participants do not reach a consensus; multiple competing views remain regarding the effectiveness and innovation of Dwolla compared to existing payment methods, as well as the implications for consumers and businesses.
Contextual Notes
Some participants reference historical payment systems that failed, indicating skepticism about the longevity of new payment technologies. There are also mentions of varying consumer behaviors and preferences that may affect the adoption of Dwolla.
