Originally Posted by
jason885
Even if your scenario passes these thresholds, I'd consider that there's a bill going through congress that could erase the entire CC business model for issuers like Amex, and Jamie Dimon at JPM recently made some news by telling his entire executive team, in effect, that they must kill the credit card industry themselves "before someone else does." I'd be highly cautious making long-term plans around any of these programs.
https://www.ft.com/content/f6d8d454-...d-825d0a68730b
As an early investor in a pay-by-bank startup, I don't think we will ever threaten the massive reward CC market, especially stateside, and I consider CC to be the superior method for most of my spending. Pay-by-bank can be great for industries which card networks or banks have default blocking, recurring payments/instalments, or businesses getting high volumes of chargebacks. However, for the most part, it's to replace manual bank transfers for faster invoice settlement and improve working capital for SMEs.
As for interchange regulation, while the US bill is different from a simple cap, Amex has demonstrated they can do well in tightly regulated markets, and I wouldn't worry too much. High multipliers may be gone, but the change will impact all players.