If it's a card-not-present transaction, Visa or MasterCard is making the bulk of the commission and forcing the vendor to take on the risk of a transaction without a PIN or password.

At least the others offer the hope that maybe some customers will pay directly from a Stripe/PayPal account, without the high commission and high risk of a Visa/MasterCard network transaction.

>If it's a card-not-present transaction, Visa or MasterCard is making the bulk of the commission and forcing the vendor to take on the risk of a transaction without a PIN or password.

3DS2 is the solution to that problem.

Not true. Visa and Mastercard don't make the bulk of the commission. When a merchant pays a standard 2.9% + $0.30 fee on a credit card transaction the issuing bank gets roughly 1.5-2.5% for interchange, which is the bulk. The processor or acquirer gets anywhere from 0.2-0.5% and the card network gets only about 0.1-0.15.

Also, PayPal does not lower a vendor's commission. If they pay with a PayPal cash balance, PayPal still charges the merchant a premium flat rate (often 3.49%) and simply pockets the entire spread. They don't pass the savings down. And consumer's don't have a Stripe account to pay from, Stripe is probably aiming for PayPal wallets via this move.