I see a value but it will be interesting to see how it plays out. Maybe I am missing the target market for saying this will be a Billion dollar company.
Most small merchants do not accept check currently. Most check payments tend to be to government entities and online bill pay type. Let's use Wal-Mart, who does accept checks- how much do you think it costs for them to run a check? Less than 1% currently using Telecheck.
Merchants pay lots of fees for cards & rewards cards (people want skymiles and points). Who issues the rewards? Banks- who makes the majority of all credit card fees- Banks to pay for those rewards.
Debit cards arent that expensive FYI- .05% + $.22 per transaction.
2- The 85% figure was provided earlier but does seem too round. To make a payment there has to be something integrated to accept the payment, so yes, there will be some infrastructure cost needed in a face 2 face transaction. Once again, similar to Google Wallet and contactless payments- merchants do not want to pay to accept this technology and are using old equipment. That is where a lot of the fraud happens.
3- Disregarding a company like that is saying "who cares about Apple and the iTunes store, etc" everyone will start using us. Those parnterships are more valuable than you think.
