Yeah I don’t understand their business model, there is a cost to process a payment so even if I give someone $100 the credit card company and payment processors will take a cut.
Now there is a difference between a platform that takes 15-30% cut and <5% but I really don’t see how they’ll be able to operate.
And this ofc goes beyond the fact as you mentioned that the big players can simply kill this by having a similar policy especially for smaller creators.
The only purpose of clubhouse that I can think off is if that’s exactly their plan in the first place.
The only other thing I can think off is if they’ll offer a content discovery platform and then charge creators to promote their content on the system but that’s arguably a worse off deal for creators since they’ll have to put in money upfront without any guarantee of returns.
> 100% of the payment will go to the creator. The person sending the money will also be charged a small card processing fee, which will go directly to our payment processing partner, Stripe. Clubhouse will take nothing.
It's still a risky business model, since in certain fraud cases it will be left holding the bag for chargebacks if it has released the money to a fraudster but they don't have a revenue stream proportional to the payment amount to cover whatever percentage of the transactions are fraudulent.
Not sure why you're down voted. People that steal credit cards find ways to fund money from those cards to themselves. Fake apps are one way this can happen. When a company sets up a model where anyone could easily become a receiver of money and anyone could easily pay, they get into the AML world.
> When a company sets up a model where anyone could easily become a receiver of money and anyone could easily pay, they get into the AML world.
Yeah, it’s interesting how very few people know about the ways payment frauds take place.
An analogy I can think of is highways. A non trivial number of vehicles plying them are carrying illegal goods. Payments is similar, when you set up a path for money to flow between A and B the very first users to adopt that path are money launderers.
Now there is a difference between a platform that takes 15-30% cut and <5% but I really don’t see how they’ll be able to operate.
And this ofc goes beyond the fact as you mentioned that the big players can simply kill this by having a similar policy especially for smaller creators.
The only purpose of clubhouse that I can think off is if that’s exactly their plan in the first place.
The only other thing I can think off is if they’ll offer a content discovery platform and then charge creators to promote their content on the system but that’s arguably a worse off deal for creators since they’ll have to put in money upfront without any guarantee of returns.