Talk Commerce

Link Money's CEO Eric Shoykhet joins Talk Commerce to explain how his company is circumventing high credit card fees by facilitating direct bank-to-bank payments. He predicts this pay-by-bank model could save merchants 60-80% on processing costs as it gains traction over the next decade. Though still in its early stages, this innovation points towards a future of smoother, lower-cost transactions for ecommerce. Shoykhet provides an inside look at how new fintech solutions are slowly evolving online checkout beyond the dominant card networks.

Show Notes

Visit https://link.money for more information

  • 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.

Creators and Guests

SP
Producer
Susan Peterson

What is Talk Commerce?

If you are seeking new ways to increase your ROI on marketing with your commerce platform, or you may be an entrepreneur who wants to grow your team and be more efficient with your online business.

Talk Commerce with Brent W. Peterson draws stories from merchants, marketers, and entrepreneurs who share their experiences in the trenches to help you learn what works and what may not in your business.

Keep up with the current news on commerce platforms, marketing trends, and what is new in the entrepreneurial world. Episodes drop every Tuesday with the occasional bonus episodes.

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