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Ask HN: Is an Open-Source Payment Processor Feasible?
5 points by Vertebrae2162 on Oct 17, 2023 | hide | past | favorite | 9 comments
After reading recent posts about how Visa and Mastercard collect and potentially misuse their clients' data, I'm curious about people's thoughts on the possibility of an open-source alternative payment processor. I have no illusions about the challenges this endeavor presents (ChatGPT has made that clear), but surely there is interest and an appetite for such an alternative, isn't there?



I have no illusions about the challenges this endeavor presents

I'm not convinced this is true.

Visa and Mastercard have a virtual monopoly on payments. Almost any and every store in the world has the ability to instantly process a payment through Visa and Mastercard networks.

Competing with this from ground zero requires massive amounts of time and money. Jeff Bezos type money.

Speaking of which, Amazon has been trying to crack this market for years without too much success.

https://pay.amazon.com/using-amazon-pay/amazon-store-card


I feel it's less a question of open source than a question of open standards. Plus some legislation that enables everyone who can prove they can reliably provide this service to have access. I think the software is of secondary importance here. And even if it is open source there would be hurdles to get the (probably) reqired certificates.

My guess is that the best chance is to lobby the EU or US for this kind of standard. If one of then could be convicted to implement such an open standard payment system then others might follow.

The success chance of lobbing the EU or US is of course probably low and that might also be the answer to the questio.


the market exists, there's many motivated individuals who'd like to see it served and willing to work for minimal material compensation to make it happen.

The problem had been that the entrenched interests own the Law and use it eagerly to ensure their monopoly. I'm still mystified by Paypal being allowed to exist, early on, while all its competitors were squashed, usually by legal actions. The rise of the "wildcat bank" crypto-cons even more so.

So perhaps it's possible now. Maybe Etherium or Bitcoin is that network. I think the banks and "traditional economy" are going to have to be forced into cooperation with whatever such a thing might be against their will.


I you don't mind persevere for 20 years, it might be feasible. This would give the time to deal with all challenges.


Bitcoin?


Bitcoin?

It's a well known fact that "proof of work" simply doesn't work on a large scale.

Lightening is a hack that compromises security for greater speed.

It is not at all clear that the end to end transaction fees using Bitcoin would be less than Visa/Mastercard. Particularly once compliance issues are priced in.


No.

Please stop suggesting this and anything else in crypto as the answer to all our problems.

Crypto is all a scam.

https://www.stephendiehl.com/blog/crypto-is-a-scam.html


Yes.

Please stop suggesting this and anything else in fiat money as the answer to all our problems.

Money and USD are all a scam.

https://www.forbes.com/sites/digital-assets/2023/10/03/elon-...


and you think Bitcoin fixes this?

delusional.




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