Part 5/10:
Payment Processing: Democratizing Access for Small Businesses
Payment processing has traditionally been a costly service, especially for small businesses that could not afford expensive hardware to accept card payments. However, the emergence of companies like Square and PayPal has transformed this segment, allowing even the smallest vendors to accept credit cards.
The reduced hardware costs and increased ease of access mean that more businesses are opting for card transactions, which can actually increase overall transaction volumes for payment processors. Nevertheless, the competition means that fees for processing are expected to decrease over time—again, a potential revenue concern for banks and credit card companies that have relied on those transaction fees.