I'm an unashamed coffee addict. The amount of money I've tapped away over the years... I think it's best I never know. In my defense, it is remarkably easy to tap, tap, tap, without realising the battering to the bank account.
That's really the sweet spot for a payments company.
The very thing costing me (how effortless it is to spend), is the thing making those companies valuable. Removing that friction is a big win for businesses, and as much as my bank account may disagree, the convenience is a big win for the consumer.
Which is why the card giants keep outliving their obituaries. Cheaper, slicker challengers were supposed pick their pocket. Yet, the payment majors have continued to grow.
It raised the question (and accompanying lesson) in this week's Market Insights: why has the fee survived the onslaught of payments disruption?
As for me, I'll keep tapping. At least now I know exactly which companies are on the other end of it.
Sincerely,
Mitchell Lawler, Senior Investment Editor
