I noticed my favorite corner store was taking payments directly from stimulus checks and clearing his books, a happy man. The most difficult part of this banking business is risk equalization. He needs to close this customers to those with regular checks and always shop on foot. He can get two thirds of their petty cash, and hedge the other one third between them. His inventory will slightly adjust to accommodate, and one can notice. But he has this slight monopoly effect, like the company store effect.
The result is a simple positive, everyone has one comfortable bag size that makes frequent walks to the store convenient. Cash it too expensive for ad hoc users of the ATM, and we customers limit service charges to nearly ten percent of usual. That is an extra thirty bucks for a lot of customers, and is the energy that powers his banking business.
He clears the scarcity of ATM machines, congestion up the street at the local ATM. Dollar Tree does this with everything a dollar cash back. Internalizing the S/L function. I make deposits there, in a week I get cash income and will leave a surplus 300 on my corner store account. That covers petty cash and then I dump a bank transfer directly to property taxes. My bank transactions are dropping down, way down as i go off book.
Fiat banks could sell this local ledger service, give and take payments with infrequent exchange at the fiat. Fiat banks need a hand held programmable, where both POS and credit card are the same device. My corner grocer can go home, check his ledger on line, make simple bank transfers as needed with cleared customer transaction. Banks would then attach a simple S/L and collect extra money by participating at the vendor level.
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