Saturday, December 27, 2014

Money Wisdom #320

"So I think that like many people, even in the payments industry itself, I kind of stumbled into payments and once I was there I went ‘wow’. Number one, this is not capitalism as usual. The business models of the payments industry are all based on tolls and fees. There is not a price mechanism at work here, it’s not the market. And in fact in the States, when the card networks have been taken to court for anti-trust violations, which means contorting the market in various ways, they’ve almost always settled out of court. They’re saying ‘yep, you’re right, that’s what we’ve been doing, that’s how it works’. That in itself in my own academic programme is an important thing to say. The systems that do the transit of value for us when we are doing our capitalism thing themselves operate according to principles that are not capitalist."

Bill Maurer in conversation with Lauren Tooker on Exchanges the Warwick Reaseach Journal (2014) (link)

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