Business Models

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If I was to create a new payment system...

Posted by Pelle June 22nd, 2005 edit

There is a lot of buzz going on right now about payment systems. First with the huge credit card theft which was seriously just waiting to happen (and will happen again), secondly with Google’s new Payment System which could have the potential to be interesting.

This subject is dear to me as I have spent more than my fair share of time in the payment system business.

So if I was to do it again (and I probably cant stay out of it completely) I have some ideas about it.

First of all these are the things I and google should do:

Google have an opportunity to do many of these things. In particular the first point about the banking system.

The banks will do anything they can to kill your business as a payment system. Afterall they have had a near monopoly for years in handling payments electronically.

Even though they do NOT handle the majority of payments in the world. Most payments are still cash and are handled easily and simply without the interference of banks.

Google cashflows

Google has the advantage of a large source of revenue through Adwords as well as a major group of small business Adsense partners.

This means they have two huge internal sources of cashflow that aren’t currently integrated.

Step 1. Linking the cashflows together to create GoogleBux

Linking those together would be the first step in the puzzle. That would simplify their operation and costs greatly. All they would have to do is to add a simple book entry system to their Google Account system.

Step 2. Allowing transfers between members.

How to turn this into a payment system then? Simply allow people to transfer parts of their GoogleBux balance to other users.

Now we have a payment system with probably a huge circulation of funds within the system.

Step 3. Cutting the cord to the banks

They currently use the banks to receive payments via credit cards to pay for Adwords. They Adsense members using antiquated paper checks or electronic fund transfer if you are lucky enough to have a US bank account.

Personally I would rather be able to spend my adsense money on adwords or other services than wait a year for $100 check that my Danish bank will then charge me $30 do clear.

Also what if I could go transfer my 67 GoogleBux to a friend in exchange for 400 dkk cash.

Someone might even make a business out of it and charge a 2% markup on exchanges to the banking system. Thus outsourcing the integration with each countries banking system to the free market. Google would save tons of moneys, headaches and legal problems.

At Reboot I talked with Malthe Sigurdsson from Skype about this as a solution for them allowing people to buy Skype credits in strange places where people don’t have credit cards. He said that they would like to do something like this, but fraud is a huge issue.

I think though that the clever people at Skype and Google could probably come up with some clever technological solutions for this. Such as not mixing hard and soft money

Hacking up a StakeItOut RSS Pitch

Posted by Pelle June 3rd, 2005 edit

My Task: Explain StakeItOut in a size suitable for a rss feed item.

Word and Excel files are just so old school. Now we share information in our blogs, wikis, backpackits and Basecamps

Startups and other projects need secure places to share their online stuff. They need their stuff to work together even thought the stuff is served from different services and vendors.

StakeItOut allows small groups to work together building and shareing their particular assets to grow and manage their goals.

It is not a project manager, for that use Basecamp. Rather it is a way of gluing it all together.

Your Task: When you are deep in something it is often difficult to explain what you are thinking and doing to people who are outside your brain. It is however important. Therefore I would like to publically edit and maintain this RSS (Elevator) pitch with your help.

Does the above pitch make any sense at all? I know that I have only let a few of you in yet. So it would be cool to build up a pitch that someone who is not I and hasn’t tried it can understand.

So please break my heart and tear it apart either in your own blog (trackback please) or in the comments. If you want to feel free to rewrite it in your own words.

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