Hey, thanks for taking the time to have a read! It's true that those two are somewhat at odds with each other. One builds on top of existing infrastructure and the other attempts to work, as much as it can, without it.

In a funny way, I feel like both could sort of angle towards a similar thing in the end. For example, while you might use a subscription based service to pay anonymously at first, you could, once/if established, also offer checkout options for businesses too. Once you own both ends of the payment, you can start connecting people directly. Paypal arguably do this already - when you pay someone's Paypal account from yours, it just settles immediately and internally.

> On anonymous payments, I think a credit or debit card like thing that offered anonymity online when buying things would be quite attractive. I would use it.

That is interesting to hear - I have spoken to a number of people who also say they would use such a service if available. What do you think would be the absolute minimum such a service could offer? I think it is the virtual cards and an email address, do you agree? How much do you think you might be willing to pay for it and how would you expect the pricing to work? A subscription? A small charge for each time you use it?

I agree with your general sentiment about merchant acquiring etc though - yes re AMEX, I don't know about the US but in the EU basically no one takes it. Payments is one of those systems where you draw a diagram of how it works, and you just think "if I designed this from scratch today... it definitely would not look like this!". I think it's inevitable it will change, and it is starting to already. The change we've seen so far is, in my opinion, mostly superficial though (much like the anonymous online payments idea would be).

> Problem would be dealing with all the payments regulations.

Yes the regulatory hurdle is a big hurdle to overcome for all the financial services ideas. I believe it is possible but you would need to get in touch with the regulator from day one and be clear about what you wanted to do. E.g. Monzo in the UK used this strategy. They just approached the FCA right at the start, and said what they wanted to do, and the regulator told them what they had to do.

I think this is tough but probably more tractable than people imagine with a bit of determination!

> As you note, network effect is the hard part but I’m sure there’s a way

I think it's extremely hard! But then I think, it wasn't so long ago that not a single store or restaurant could take credit cards of any card (they didn't exist). How exactly did mastercard get going? Did they start with one location? I would like to research this, do you know anything about it?

My intuition is that by focusing on small businesses and their customers at first, you can actually offer something they don't have access to. I see many local shops stil advertising with flyers or street signs and using stamps on a card for loyalty programs etc. Word of mouth and perhaps a facebook group is the only way they reach their customers. A platform that connected them and their customers would potentially have real value to them. For example, as a consumer using the system, I might be able to quickly see which places have got lunch deals on within half a mile, then automatically claim my discount by paying with the app.

What do you think about that? What would incentivise you, for example, to put a small amount of money into that system and pay for things with it? Access to unique offers? Loyalty schemes? Supporting local businesses? A unique payment experience? Itemised receipts (not on a bit paper!)?