What is the typical interchange rate for the consumer segment in the value chain, and how does this impact the neobank market?

Guest: 1.3% on debit does sound correct specifically for exempted banks under the Durbin amendment, whether or not you actually see the 1.35% is a whole other question. You really need to push to negotiate. Some BaaS providers we've negotiated with, their model is that they take most of your interchange and hope you don't understand what interchange is, which is sneaky.

I'd say your true net is probably 1%.

The interchange really depends on your customer base. If your customer base is lower-income, they're probably spending at places that don't have nearly as high interchange, like grocery stores… or utilities which pay no interchange, essentially. You require a lot of volumes and you require a few whales. 

I would be wary of debit interchange. What if there are some threats to the Durbin amendment? And that's something that you should actually factor in. Legislators are getting pressured by like merchant lobbyist groups to drop the Durbin amendment, which would kill 90% of these startups overnight time and they would fail immediately. The bet here is that everyone's looking up at Chime and Current to counter lobby.