Yes, it is 1.4 times the deal people had, if and only if the conversion rate goes up that much. Whether the terms will change or not in the future is also something that a businessperson would consider.
P.S. Yeah, I know the mathematics above isn't exact if there is already a fee for transactions, etc., etc.
Actually the numbers could be much, much better than 2X.
But your last point about the risk of a changing playfor
is very valid. In the case of payments, I'd bet for a conservative initial system that gets more flexible over time. The nature of anti-fraud almost mandates that approach.
>Actually the numbers could be much, much better than 2X.
Or the numbers could be exactly the same, either way, he's muscling in on 30% of their revenue for providing pre-existing functionality and expecting them to like it or lump it.
If it was a smaller cut, I imagine it would be a much easier pill to swallow, but 30% is just plain greed.
P.S. Yeah, I know the mathematics above isn't exact if there is already a fee for transactions, etc., etc.