Hey there Thanks - I dont understand at all the cafe owner...

Hey there

Thanks - I dont understand at all the cafe owner thinking re rewards etc so I am not qualified to tell

But I do understand the merchant payment issues and it is going to be very difficult to get a merchant to switch their merchant provider. Clipping this ticket is actually quite difficult. And the margins are minuscule.

For example the typical cafe/food service operator in Au has revenues of around $800k pa of which around $300k are on cards.

As an intermediary its hard to get more than half a percent as a merchant rebate. So that $300k turns into max $1500 pa. And you just need a few hours of tech support and a customer training visit of two to wipe that out. And dont even go into the expense of chareback management, fraud management etc.

Lets say GP ends up being $1k pa. Lets say 25% of their merchants take up the offer (and this would be incredible take up).

net result to rewardle - $1m pa. And this assumes no cost of sale.

Now on the plus side there are 70k+ food service outlets in AU. So lots to go after. But as soon as an operator has more than one store then the point of sale system gets very sophisticated and theres no way a stand alone tablet will cut it.

So some one help me out - how does the merchant payment offer scale? If Mint couldn't get this to fly how will Rewardle?

Great to get some thoughts -