I thought the cash equivalent of the rewards are charged to merchants ontop of the fee? Square etc shelter that from their merchants (which partially explains their losses quarter to quarter).
The marginal cost of servicing another person when they already have a consumer base of people with debt is very small (close to zero). I'm trying to say it's still profitable, but not where they make the bulk of the revenue.
The marginal cost of servicing another person when they already have a consumer base of people with debt is very small (close to zero). I'm trying to say it's still profitable, but not where they make the bulk of the revenue.