Mogul of Pineapples
- Centurion Member
- Posts: 1271
- Joined: Sun Jun 01, 2008 11:32 pm
- Location: Smogland
Ok so I looked this thing up and get this... the funding is by Citi, Morgan Stanley, and Deutsche Bank! Why would Citi come out with a product that competes against their own? Here's what I think:
- This is no different than a designer that sells high fashion clothes but has a cheap line of clothes at Target. They realize there's only so much money to make in one area, and so much in the other, so they do both to make the most possible. Citi probably has realized there's only so much money to make with traditional credit cards so why not capitalize on this new method too? It will be competing against themselves but it doesn't matter because they have a slice of pie on both sides. *This is what I think.
- Or maybe Citi just got in because they thought "Oh crap this product is going to compete with ours and if you can't beat 'em, join 'em" as a way to hedge their business to play for both teams just to be safe
- This product looks like it's a direct competitor to Paypal because it allows you to send payments to other account holders too. Maybe Citi got in on it for this reason alone so they could have a stake in a company which they hope will replace Paypal.
Those companies and those names behind it makes me think this thing isn't a joke and it's actually going somewhere. I'd like to see in 5 or 10 years where they are. Maybe they'll end up like Discover, a major credit card but with a minority marketshare.
Disclosure: I am a moderator/paid staff of this site, which does have advertising relationships with some credit cards that are discussed and linked to. Regardless, anything I say is my honest opinion.
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