Comments on: Y Combinator Challenge #17 – New Payment Methods http://astartupaday.com/2008/08/12/y-combinator-challenge-17-new-payment-methods/ Each day I'll post an idea for a new Web 2.0 startup Wed, 03 Mar 2010 00:13:45 +0000 http://wordpress.com/ hourly 1 By: Chris http://astartupaday.com/2008/08/12/y-combinator-challenge-17-new-payment-methods/#comment-3557 Chris Sun, 24 Aug 2008 01:45:51 +0000 http://astartupaday.wordpress.com/2008/08/12/y-combinator-challenge-17-new-payment-methods/#comment-3557 I've watched people try similar ventures ever since I started working in the online payments space 14 years ago. Paypal made it easy for individuals to transfer money to each other. They basically used third party billing in a way that had not been done before on a large scale. Coming up with new payment methods is a whole other thing, and IMO a solution looking for a problem. I never did hear a convincing argument for micropayments, which have tried and failed many times over. From the consumer perspective credit cards work very well, and if you are going to complicate their lives with something else, you better have a really good value proposition. I’ve watched people try similar ventures ever since I started working in the online payments space 14 years ago. Paypal made it easy for individuals to transfer money to each other. They basically used third party billing in a way that had not been done before on a large scale.

Coming up with new payment methods is a whole other thing, and IMO a solution looking for a problem. I never did hear a convincing argument for micropayments, which have tried and failed many times over. From the consumer perspective credit cards work very well, and if you are going to complicate their lives with something else, you better have a really good value proposition.

]]> By: RobR http://astartupaday.com/2008/08/12/y-combinator-challenge-17-new-payment-methods/#comment-3524 RobR Wed, 13 Aug 2008 03:43:08 +0000 http://astartupaday.wordpress.com/2008/08/12/y-combinator-challenge-17-new-payment-methods/#comment-3524 It is likely that most of these virtual currencies have a bit of the "gift card" mentality to them -- the people who run the currency expect it all to eventually be "spent" in there system, and might try to make it difficult to freely or automatically exchange them. But I posted because I was a bit puzzled by your remark, "Maybe something worth patenting now, and waiting a few years before the technology catches up before it would be implemented?" . Doesn't a patent have to contain enough information that an ordinary person working in that field could implement it ? You know, it used to be a requirement that a patent application be accompanied by a working model. If the technology is not there to implement it, can it be patented ? The US Patent system does not allow the patenting of ideas. It is likely that most of these virtual currencies have a bit of the “gift card” mentality to them — the people who run the currency expect it all to eventually be “spent” in there system, and might try to make it difficult to freely or automatically exchange them.

But I posted because I was a bit puzzled by your remark, “Maybe something worth patenting now, and waiting a few years before the technology catches up before it would be implemented?” . Doesn’t a patent have to contain enough information that an ordinary person working in that field could implement it ? You know, it used to be a requirement that a patent application be accompanied by a working model. If the technology is not there to implement it, can it be patented ? The US Patent system does not allow the patenting of ideas.

]]> By: Gustavo Sverzut Barbieri http://astartupaday.com/2008/08/12/y-combinator-challenge-17-new-payment-methods/#comment-3523 Gustavo Sverzut Barbieri Wed, 13 Aug 2008 02:49:21 +0000 http://astartupaday.wordpress.com/2008/08/12/y-combinator-challenge-17-new-payment-methods/#comment-3523 It would be a hit on governments and taxes, as, for instance, Brazilians could earn and expend money on US (or, let's say, "the web") without having to bother with Brazilian taxes, which are absurdly high. Things that are not physical, like music, are like this today. It would be a hit on governments and taxes, as, for instance, Brazilians could earn and expend money on US (or, let’s say, “the web”) without having to bother with Brazilian taxes, which are absurdly high. Things that are not physical, like music, are like this today.

]]> By: Tom http://astartupaday.com/2008/08/12/y-combinator-challenge-17-new-payment-methods/#comment-3521 Tom Tue, 12 Aug 2008 21:37:34 +0000 http://astartupaday.wordpress.com/2008/08/12/y-combinator-challenge-17-new-payment-methods/#comment-3521 It seems like a good idea, but in practice most of the points systems forbid transfer, and list the monetary value of their points at $0.0001. As such while one could plan to trade "virtual currencies" actually doing so my prove prohibitive. It seems like a good idea, but in practice most of the points systems forbid transfer, and list the monetary value of their points at $0.0001. As such while one could plan to trade “virtual currencies” actually doing so my prove prohibitive.

]]> By: guruz http://astartupaday.com/2008/08/12/y-combinator-challenge-17-new-payment-methods/#comment-3519 guruz Tue, 12 Aug 2008 18:23:11 +0000 http://astartupaday.wordpress.com/2008/08/12/y-combinator-challenge-17-new-payment-methods/#comment-3519 Hm. I'd go for defining some standard.. nothing too advanced, just focus on the core features and security. And maybe keep in mind that it should be decentralized. Hm. I’d go for defining some standard.. nothing too advanced, just focus on the core features and security. And maybe keep in mind that it should be decentralized.

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