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Aravind's avatar

The Big Opportunity: A New B2B Payment Network

Can you maybe expand on how this plays out? Doesn't this require deeper integrations with the banks themselves and build those pipes to create a parallel network to Visa/Mastercard?

And by deeper integrations, I mean each bank has to spend time, effort and money to work with a central network like Visa. This was successful because Visa originated from Bank of America and then evolved to become a consortium of banks before becoming a publicly listed company. What would be the reason for banks to spend this effort to work with a new private player without significant return on the investment?

Money movement becoming data movement - this is not the case due to regulations with respect to KYC and AML and these are today handled only by banks and the card networks. If Modern Treasury has to become a central network, then it has to start handling KYC and AML guidelines which they are not doing today.

Just to add, I have built Hypto.in - a payment aggregation platform in India which currently processes 300K transactions per day and $150 Mn per day for over 2000 businesses. We had the same vision when we started building Hypto but learnt that the barriers to create a new payment network are extremely high and in my opinion, it does not seem like an organic evolution for Modern Treasury to become a payment network.

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Kevin Hinyub's avatar

Packy is becoming the Cal Ripkin of modern business journalism....the hits keep coming

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