New Service Idea

Re: [spiers] New Service Idea

Short term it would work. Long term I think we are
moving towards a cashless system. I saw a news story
showing how in Europe (Finland) you can buy a coke out
of a vending machine using your cell phone.

--- John Spiers wrote:

> Folks,
>
> It is not uncommon for airport vendors (outside of
> USA anyway) to accept payment in a foreign
> currency and give the change in a local currency.
>
> What happens is the vendor takes say JPY1000 (which
> is about US$10) and converts it to about HK
> $70, charges the HK$34 for the mocha grande and
> gives the patron (70 - 34 = 36) HK$36 in
> change.
>
> Now, what if someone were to develop a program that
> that converted foreign currency at a
> handsome profit (that part is simple) for retailers
> to use so they could accept foreign currency
> from retailer customers in USA.
>
> Some traveller has a 500 euro note left over from a
> trip, is buying dinner at a fancy restaurant, the
> restaurant accepts the EU500 , converts it to
> US$650, takes out the US$400 tab, and gives change
> of US250.
>
> Retailers in USA who sign up for this service agree
> to use your exchange rate and sell the foreign
> currency to you. You in turn sell it to the banks,
> at a nice profit.
>
> Of course, you'd have to build in a premium for
> counterfeit bills, and you'd have to have some sort
> of loss limits, but by introduciing this at the
> super premium level, the quantities would be small
> and generally the "customer" would be known to the
> retailer.
>
> The vendor gets an enhanced image of sophistication,
> may make news and certainly any time one
> can accept more forms of payment, ones business
> grows. The fact that you are makiing say 15%
> overnight on your money, with ever growing velocity
> is something no one will notice or care about
> at this level.
>
> Later this biz could be sold to the people who turn
> pocket change into dollars at the grocery
> stores (I heard copper in pennies is now worth 1.25
> cents.)
>
> The job would be to vacuum up all those residual
> stashes of foreign currency people have in their
> dressers, and make money of course.
>
> Who will take this?
>
> John

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