Mobile wallet that treats you & friends to fun surprises

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Ben Parr
Ben ParrHiring@benparr · Co-founder and CMO, Octane AI
So it's a card that... Gives you rewards? I mean... Isn't that like every card out there? Why... Why would I use this over my Amex or another card? Their pitch is... Incomplete. Flat. Unappealing. No reason to switch. I'm just sad about the whole Clinkle episode. These comments are gonna be a shit show.
Murat Mutlu
Murat MutluHiring@mutlu82 · Co-Founder, Marvelapp
Some seriously good animations on this
Jonathan Moore
Jonathan Moore@moore · Designer & Founder, Style Hatch
@mutlu82 I'm loving the "treats" animation.
Rob Ryan
Rob RyanMaker@robertoryan · Product Designer, Shift
@Moore thanks guys :-)
Tori Bunte
Tori Bunte@stttories · PMM, HPE Storage
Talk about pivoting.
Rob Ryan
Rob RyanMaker@robertoryan · Product Designer, Shift
@stttories gotta give the kids what they want, ya know?
Yury Lifshits
Yury Lifshits@yurylifshits · Co-founder and CEO, Statecraft
— A debit card — An app showing transaction history — Rewards shared with friends — Sending cash to friends Did I got it right?
Corey Gwin
Corey Gwin@corey_gwin · I make stuff. 👨🏻‍💻☕️ Building
@yurylifshits I had the same struggle. Still wondering why I should want this? Clearly I'm not the demo.
David Kettler
David KettlerMaker@21echoes · Engineer, Patreon
@yurylifshits yup! with plenty more in the pipeline :D
Mark Egerman
Mark Egerman@megerman · Cover, Co-Founder
As a former regulator and co-founder of a mobile payments startup, this one's a headscratcher. Is this a less profitable version of HigherOne? Is it Simple for a smaller market and four years too late? Do they think there'll be enough prepaid interchange to pay for rising customer acquisition costs, loyalty programs, and infrastructure? This has become a fairly mature and competitive market - they're going up against WalMart and AmEx, and it seems like a company with such a troubled history chose to pivot into an extremely tough spot. And then there's the future regulatory headaches that are coming down the pike. It's unclear how much of the advertising about fees on the website would survive Reg DD scrutiny if this were a debit card. It's not. Like Simple, it's a general purpose reloadable (GPR) prepaid card. There aren't substantive regulations on disclosure yet, although the CFPB has announced rules coming in this area: Still trying to figure out how this is going to work out well.
David Kettler
David KettlerMaker@21echoes · Engineer, Patreon
@megerman Hey Mark! We don't make [EDIT: profit] on interchange, and don't plan to [EDIT: we get the standard interchange income for issuing banks as revenue]. All of that money goes back into the Treats program. As far as fees, we have a pretty comprehensive set of disclosures on our site, all of which we are presently waiving (and hope to eliminate entirely as we gain traction).
Mark Egerman
Mark Egerman@megerman · Cover, Co-Founder
@21echoes That's not too surprising, given the relative bargaining power with your issuer - most startups can't really control much of those economics. But not taking any interchange and remitting it all to the networks or your issuer, that seems off. Still, the formula for a GPR is pretty straightfoward. Fees + Interchange + Float - Customer Acquisition - Overhead - Fraud = profit. Sounds like you have no interchange revenues, a costly loyalty program, and there's no way you're going to make money off float given what interest rates are. This isn't rocket science - this is just the very straightforward economics of a well-understood product that anyone can buy off a j-hook at a WalMart, CVS, etc. Breakage can't save this model either - escheatment takes care of that. LevelUp tried losing money on interchange and making it up on loyalty, but well, they quickly learned that didn't work. So I just don't get the economics at play for this product. Unless this whole thing is a loss leader to move students onto higher-margin financial tools, consider me puzzled. Cover is hiring. We make money on every transaction. I highly recommend it.
David Kettler
David KettlerMaker@21echoes · Engineer, Patreon
@megerman Sorry, to be clear: we don't make *profit* on interchange, we re-invest it in Treats (our rewards program). Edited my comment above accordingly.
Michael Dempsey
Michael Dempsey@mhdempsey · Partner at Compound
@megerman This is one of the best comments I have ever read on PH.
Derek Shanahan
Derek ShanahanPro@dshan · Three Hex, Cloud Unicorn
@mhdempsey Agree. Would love for a Clinkle investor to come in here and respond re: economics of the model.