Money & WorkFact

Why card payments cost you nothing but cost the merchant plenty.

Platforms serve two groups that need each other: buyers and merchants, passengers and drivers, readers and advertisers. Often one side pays almost nothing so it shows up in numbers, and the other side funds everything. With credit cards the merchant pays fees while you even get reward points. The price hides in shop prices.

Useful: If you pay nothing on a platform, the other side is funding you, and it recoups that.

Source: de.wikipedia.org

GeschaeftsmodellPlattformUnternehmen

Difficulty:

Related cards

One phone is worthless. Two are a connection. Billions are a monopoly.With network effects, a product gets more valuable the more people use it. Messengers, social …
You don't stay because it's good. You stay because leaving hurts.Switching costs are everything a change of provider costs you: re-uploading photos, moving …
Why every company suddenly wants you to subscribe.A one-off sale brings money once; a subscription brings it every month with no new purchase …
Freemium: a few payers fund millions of free users.In the freemium model the basic version is free and extras cost money. Only a small percentage of …
The printer is cheap. The ink costs more than champagne.In the razor-and-blades model, the base device is sold cheaply or below cost and the money comes …
Creator economy: millions post, a handful earn.Content creator income follows an extremely skewed distribution: a tiny top earns millions while …
Why a car plant gets built without a warehouse.From the 1950s Toyota perfected just-in-time: parts arrive only hours before installation. Stock …
The app is free. Your evening isn't.Free apps don't sell to you, they sell you: your attention is auctioned to companies as ad space …

Keep reading

This card belongs to the topic Money & Work. Every card is short, cites a source and can be saved – due ones come back by themselves later.

About Doomlearn · Projects · Legal notice · Privacy · Terms