<i>Doing some back of the envelope calculations I can&#x27;t see any scale where they are profitable given their current fee structure.</i><p>Could you explain?  I&#x27;m sure you have much more experience reading such numbers[1] than I do, but at a glance they look  viable if they can grow to something around double their size.<p>Ignoring Starbucks and doubling the amounts for 1H 2015 to make it annual, they&#x27;ll have about $1000M of revenue from transactions, and will pay about $600M of transaction costs.   They&#x27;ll have about $500M of operating costs for 2015 and $100M of various other costs.<p>If in 201X they were to be double this size, they&#x27;d have $2000M of revenue, and $1200M of transaction costs.  If they can keep their operating and other costs below $800M, they&#x27;ll be profitable.  Of their expenses, &quot;Transaction and advance losses&quot; will probably scale linearly, but all the rest plausible to be significantly sublinear.<p>Is this simplistic scenario clearly impossible for some reason?<p>[1] <a href="https:&#x2F;&#x2F;www.sec.gov&#x2F;Archives&#x2F;edgar&#x2F;data&#x2F;1512673&#x2F;000119312515343733&#x2F;d937622ds1.htm" rel="nofollow">https:&#x2F;&#x2F;www.sec.gov&#x2F;Archives&#x2F;edgar&#x2F;data&#x2F;1512673&#x2F;000119312515...</a>