The Complex Prepaid Market Could Face Disruption with a Change in Reg. II of the Dodd-Frank Act
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Mercator Advisory Group releases new research on the prepaid market and how a change in interchange regulations could pose significant challenges for fintechs.
One of the 4 exhibits included in this research report:
While fintechs would lose a significant amount of interchange revenue – often one of their key income-generating activities – traditional financial institutions who have never benefitted from this revenue would gain a competitive advantage.
BOSTON (PRWEB)
April 12, 2021
Revenue from interchange fees makes up a large share of many fintechs’ income, but a letter from The Clearing House (TCH) to the Federal Reserve Board may change regulations and cost fintechs much of this profit. The prepaid value chain is made up of a complex web of players, with some benefitting more from interchange revenues than others. Mercator Advisory Group’s latest research report, An Exploration of the Complex Prepaid Market and How a Change in Reg. II Could Unravel Fintechs, discusses TCH’s letter and its possible implications – intended and otherwise – on the prepaid market.