Mastercard has taken advantage of that, and upped fees by an eye-watering 400%, from 0.3% of a transaction to 1.5%.
Because the UK is no longer part of the EU or EEA, rules limiting the fees that card networks can charge European retailers (“interchange fees”) for accepting payments from UK customers no longer apply.
As Sarah Kocianski Head of Research at 11:FS highlights, there are several problems with payments.
– The card conundrum
The problem for retailers is that card payments are a hugely popular payment method in many regions, and most people understand how to use them even though their sharing dropping.
– The cash quandary
Cash has many downsides but it does still have a place in society, particularly amongst the most vulnerable and as a backup when technology fails.
The cost of making QR payments is lower than that of Visa and MasterCard since unnecessary intermediaries – Visa and MasterCard themselves – are eliminated from the process.
To organize digital, non-cash payments by QR codes, entrepreneurs do not need expensive equipment and no payment terminals.
It is easier to integrate new financial instruments, including cryptocurrencies, into QR codes.