The actual cost of moving €100 between two bank accounts in real time, via SEPA Instant: €0.02-0.05. The cost a merchant pays for a €100 card transaction: €0.80-2.50. The multiplier is 16-125x.

Card processing doesn't cost 2% because the infrastructure is expensive. It costs 2% because the market structure allows it. Four to six intermediaries each take a cut: issuing bank (interchange), card network (assessment), acquiring bank (markup), processor (fees), gateway (more fees).

This briefing breaks down where every euro goes on a €100 card transaction, why each component exists, and which ones reflect actual costs versus pricing power. Then it does the same for A2A at 0.5% - one intermediary, no legacy cost structure, instant settlement.

Full episode for merchant scenarios from coffee shop to subscription SaaS, the bank-side defensive vs offensive playbook, and the 10-year fee compression trajectory.

Full source material and the complete breakdown: https://go.payware.eu/p-economics-b

Produced by payware - the transaction resolution network for instant A2A payments.

AI-generated from payware's published research and documentation.