Imagine if Borders bookstore told Amazon that they cannot compete with brick and mortar stores because customers can't send cash through the mail? Would it now be Amazon that is bankrupt instead of Borders? Whodathunk it?
You know this is pretty much word salad, right? This isn't about one business telling another that it can't work for some made-up reason, this is about a real, fundamental disadvantage one payment method has over another that isn't going to go away just because you want it to.