THE END OF INTERCHANGE

Summary from the TLDR Founders newsletter

The interchange fees that make up much of the cost of the credit card system are eventually going to go away. The interchange fee model is vulnerable to disruption from stablecoins, bank-to-bank direct payments, Pay by Bank platforms, and cryptographic identity layers in ACH. It is still an open question whether stablecoins or retrofitted ACH/bank rails will win, how fraud and reversibility concerns will be addressed, and what the timeline is for meaningful interchange compression.