I may be being very naive here, so it would be great for someone to point out where I'm missing a trick, but if they make $2 billion in revenue and keep 20% of that, why don't they found or buy a small bank? I mean granted it's not their core business area, but it's a huge risk factor for them, so an acquisition doesn't seem out of the question to mitigate that risk...
According to here[0], banks need approx $20 million in startup capital. Now I don't know what onlyfan's costs are, but they seem to be sitting on a lot more than that or alternatively they could get financing.
Is there a reason this isn't a direction they've explored? The fact that they've not swapped to a more expensive payment provider implies that it's not a good option, but that may be a simpler solution, or they could provide a competitive option in this space?
Likely, the restrictions are coming at the card network level rather than the bank level. Building a Visa/Mastercard network is a much harder proposition than just buying a bank, especially as it pertains to consumer distribution.
According to here[0], banks need approx $20 million in startup capital. Now I don't know what onlyfan's costs are, but they seem to be sitting on a lot more than that or alternatively they could get financing.
Is there a reason this isn't a direction they've explored? The fact that they've not swapped to a more expensive payment provider implies that it's not a good option, but that may be a simpler solution, or they could provide a competitive option in this space?
- [0]: https://howtostartanllc.com/business-ideas/bank