Chris Hutchins
speaker
980 appearances
2 recordings
2 series
first heard Sep 2025
last heard 16 Sep
Chris Hutchins’s voice in public audio — every appearance, attributed to the second.
Trend
recordings per month · last 12 monthsRecordings per month over the last 12 months — 1 in all, peaking in Sep 2026 with 1.
Appearances
So if you're online, there's a technology company called Stripe that powers a lot of e-commerce.
If you ever paid for something at a farmer's market with Square, they're a processor.
And so about 25% of the fee goes to the processor.
And a small amount, maybe 0.1%, 0.2% goes to the network.
And then the rest goes to the issuing bank.
And so in a world where consumers don't care about rewards, you could go and say, hey, let's create this something you should know credit card.
And there will be a bank or a credit union that would say, hey, how about we have this card?
It offers no rewards, but we'll give you 1% of it.
And so membership organizations use this as a way to say, hey, if you want to support the member group, you could go use our card or a university alumni card.
And the university or the membership org would get a percentage of that interchange.
However, what happened was these rewards programs got so lucrative that you couldn't really compete if you were also paying some percentage of that revenue to the organizations.
So it's really hard to launch your own credit card and be competitive with the cards that Chase and Amex and all of these other major issuers are offering.
they there have been tons of wild stats.
I think in 2024, Delta said that one percent of US GDP is transacted over their American Express cards in a year.
I think they said almost.
But like the fact that you're thinking of the amount that goes through a Delta Airlines card being that high really says something.
But the most interesting stat here is if you actually look at airlines and you look at their balance sheets and you try to understand how they function as companies, you will find that they are much more like banks that sell their rewards currencies to these issuers of these credit cards than they are like airlines.
So I'll take an example.
American Airlines as a company has a market cap, meaning the value of all of the stock of $6 billion.
But if you just look at the value of the loyalty program, it's about $25.5 billion.
Showing 861–880 of 980 · page 44 of 49
← Previous
Next →