Jack Mallers is a Bitcoiner. He founded the company called Strike. The mission of Strike is to make the Bitcoin network easily accessible and usable. They have chosen the Bitcoin network because it is uncensorable, unfreezable, permissionless, borderless, and offers cash finality. With Bitcoin as the monetary network, the financial system is set to be cheaper, faster, more innovative and more inclusive.
Strike has partnered with Shopify, Blackhawk, and NCR is massively bullish news and has not yet been priced in.
What is a payment network? A payment network is a network that facilitates the payment transaction between the merchant and the issuer, i.e., the requestor (the merchant) and source of funds (the consumer). Payment network more or less just facilitates this.
History of payments network? A bunch of rich bureaucrats in New York City who did not want to carry cash. They felt it was a huge inconvenience to carry cash around and they wanted a better way to go about this.
When someone wants to pay for something, they had to simply carry card. The Diners Club, 1949 made this possible. The kind of convenience the consumers enjoyed with these cards were realized. Bank of America announced the Bank of America Card – eventually made it into a mass market product.
On October 1, 1958, American Express launched the American Express Card. The card was launched with an annual fee of $6, $1 higher than Diners Club, to be seen as a premium product.
Then came small banks cards like: Interbankard, Inc. 1966 – Master Charge – The Interbank Card.
By 1970, BoFa gave up direct control of the BankAmericard Program, forming a consortium with the other various BankAmericard issuer banks to take over its management. It was then named Visa in 1976.
New York Times, August 28, 1979: “In a move to broaden the image of the Master Charge Card Beyond that of a charge-account vehicle, its licensing organization said yesterday that the card, which is held by more than 55 million Americans would be redesigned and renamed Master Card.”
New York Times, June 23, 1981: “Citicorp, which already offers the Carte Blanche credit card, said that it had received approval from the Comptroller of the Currency to complete its previously announced acquisition of the Continental Corporation’s Diner’s Club Credit Card operations.”
Jack Mallers: Payment Networks have not innovated in over 50 years. And, that is insane.
There is a consumer and there is a merchant, there is a 100 dollar transaction. When I swipe my card to pay, there are actually more parties than I know when I pay by swiping my card. There are 5 parties in involved –
The parties are:
At the point-of-sale system, I swipe the card, the “PoS system” passes on the information to the “Merchant’s Bank”, the Merchant’s bank reads the card info and then sense the information to the “Card Network” further a verification happens as to whether $100 is available for spending – then the receipt is given for the money spent.
On a $100 transaction, the consumer spends $100 but the merchant gets $97 because the Consumer’s bank, Merchant Bank, and the Network take a part of the money for the transaction.
Thus, a payment network is a network that facilitates the payment of transaction between the merchant and the issuer, i.e, the requester (the merchant) and the source of funds (the consumer). Thus, money is moved from consumer to merchant.
The current day innovations are:
But still, No one has helped the Merchant and the consumers continue to get all the love.
Dream Monetary Network: With Network Benefits: First and largest network, openly accessible, global, cash finality, instant settlement, virtually free – close to free as humanly possible.
Jack Mallers on Bitcoin and Lightning:
And, Bitcoin carries all these properties. Lightning Carries all these properties. I am dreaming of a QR code that can be used to make all the payments – going all digital without having to carry the card.
Superior payments obvious advantages: More customers as Bitcoin is open and global, settlement will happen in seconds. Cash finality with Zero Reversals and Charge Backs. Costs are virtually free in the free market. New opportunities and new innovation.
This Jack Mallers claimed would be a superior payment standard.
A finance graduate, Maheen Hernandez has been drawn to cryptocurrencies ever since Bitcoin first emerged in 2009. Nearly a decade later, Maheen is actively working to spread awareness about cryptocurrencies as well as their impact on the traditional currencies. Appreciate the work? Send a tip to: 0x75395Ea9a42d2742E8d0C798068DeF3590C5Faa5
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