Notes from a conversation last night…

Two things you learn about money when you start building payment systems:

  1. Money is just a gate. When a transaction happens the gate can open or stay closed. Sometimes the gate is pretty simple – do you have enough money in your wallet? Sometimes the gate is a bit more interesting – do you have money? should we give you credit? do we trust you? what does your data patterns and reputation say?
  2. Don’t confuse value flow with money flow. Payment systems record transactions – the flow of value. This is usually aggregated daily before actual money flows between bank accounts.