The telcos want to be in the banking business. Plain and simple. They are already in a "own the customer" relationship and with technology they can move money and credits around as fast as any bank. This recent move by Verizon for FiOS payments shows they don't want to be paying fees when they can do it for less and make more.
My read of this is simply this. The telecom folks want to handle your transactions so by going bank direct, and bypassing the credit card companies (Visa, Amex and Mastercard) they save their customers money and make more themselves. Somewhere though the consumer is getting shafted. I see a class action suit in their future, but by then, the telcos will have their payment, deposit and transactions platforms built, major banks and credit card brands will align, everyone will be making money, and the consumer will still pay more. Nothing changes. Just the model.
Comments