What we disrupt - how and why!

Why do we sign checks or a credit card transaction if our signatures are hardly ever verified? Why can’t you deposit a check that is made out to you without signing the back? Why can you take a check that’s made out to someone else, sign the back and deposit it into your account? These are valid questions young people are asking today. The simple answer is that the entire payments and banking system in the U.S. is firmly rooted in the physical currency deposit and signature world. The longer answer is that legacy behavior is like DNA and changing DNA at banks is near impossible (according to some banking executives).

We have said it in our Summation that banks provide three essential purposes (safety, payments & loans) and all three value propositions are quickly disappearing for banks. Across the planet people are demanding faster and easier payments and flexible savings options. Banks can’t innovate to keep up and have cobbled together legacy systems that produce friction points. A signature requirement is a great example of a legacy holdover that serves absolutely no purpose except to create a friction point. Legacy behavior is rampant in the U.S. Banks still move currency by an armored stagecoach.

, yet check cashed without the signature. Every transaction at a bank mimics a cash transaction and as a result brings with it a ton of legacy behavior. A good example is is moving between banks. Financial institutions still move as though Cash once moved between banks using stagecoach and today has moved to armored cars.


Legacy Behavior
Costly to merchants
Lengthy Merchant Settlements
Zero Merchant Data Sharing
Physical Plastic Based Transactions
50+ year Legacy Networks
Too Many third-parties Involved

Key Players: Visa, Mastercard, AmericanExpress

What Honey Disrupts

Merchant & Consumer Communication

Legacy: Batch transactions, settlement account requirements
Credit Card Companies