On: To Cover China, There’s No Substitute for WeChat

[cal5k]

This has nothing to do with lack of technology adoption and everything to do with avoiding taxes.

[paulie_a → cal5k]

And transaction fees

[seanmcdirmid → paulie_a]

Are they really worried about the CC fee on $15 drink?

[paulie_a → seanmcdirmid]

Yes absolutely, if they care about profit margins.

[seanmcdirmid → paulie_a]

But not if they cared about sales volume. That is just really dumb for an expensive impulse buy like alcohol. Even McDonalds can afford to take CCs these days.

[paulie_a → seanmcdirmid]

That's not how cc fees works. McDonald's does such volume they pay a lot less. A nice restaurant selling those more expensive drinks does a lot less volume. So they pay more. and in the restaurant business margins like that matter. Upwards of 6.5 percent is a decent margin to lose.