How Bank-to-Bank Payments Could Transform Ecommerce with Eric Shoykhet

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• 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.