But still, definitely a promising improvement over ACH.
It is a practical problem that the merchant has to wait 24-48 hrs for funds. It's a cash flow problem. It slows down the speed at which that cash can be used to purchase other goods or services. For example, a made-to-order business has to wait for funds to clear from a customer (or front the capital) before they can turn around and order goods to produce the product a customer is purchasing. Which slows down delivery. And that effect is amplified across the whole supply chain.
> It's a cash flow problem. It slows down the speed at which that cash can be used to purchase other goods or services.
No. That's what lending is for. Square will allow you to cash out instantly for a 1% fee, they offer merchants a debit card they can use to access the funds in real-time as they're received for no additional fee, or you borrow some amount of float at today's incredibly low interest rates.
As a business in need of liquidity you can even sell your accounts receivable for less than 1% to invoice factoring companies. There's so many options out there.
Or the merchant can open a credit card and get fee-free interest-free loans for a whole month.
This is not an issue today, or rather, you’re making mountains out of molehills. There are ways of addressing this without crypto or throwing out the existing financial system. But more importantly what how many merchants wait for funds to clear before they go out and buy the supplies to do a job?
But still, definitely a promising improvement over ACH.
It is a practical problem that the merchant has to wait 24-48 hrs for funds. It's a cash flow problem. It slows down the speed at which that cash can be used to purchase other goods or services. For example, a made-to-order business has to wait for funds to clear from a customer (or front the capital) before they can turn around and order goods to produce the product a customer is purchasing. Which slows down delivery. And that effect is amplified across the whole supply chain.