Plastiq

Plastiq targeted a genuine pain point: businesses and consumers couldn't pay most bills with credit cards, missing out on rewards and cash flow benefits. ​​‌‌‌‌‌‌‌​‌‌​​‌​​​​​​‌‌​‌‌‌​​​‌‌Accountants, small business owners, and landlords experienced this acutely—they faced rigid payment systems that demanded checks or bank transfers. The problem was measurable: billions in annual bill payments occurred outside card networks. Alternatives existed but were clunky: payment processors like Bill.com offered limited card acceptance, while traditional banking provided no rewards incentive. However, Plastiq's unit economics proved fatal. The company charged convenience fees (2-3%) while paying interchange costs to card networks, creating razor-thin margins. Customer acquisition costs exceeded lifetime value, particularly for price-sensitive SMBs. The warning sign was ignored: the business model required massive scale to break even, yet growth came from customers with low transaction frequency. Plastiq eventually pivoted toward B2B2C partnerships rather than direct consumer acquisition, acknowledging that their core unit economics couldn't sustain independent growth.