We’ve talked about mobile commerce and how new ways to pay would have an effect on cards, but maybe the biggest shift we will see in the near term is mobile phones taking on the role of the payment terminal.
Following the success of Square in the US (processing $5bn p.a.) and iZettle in Europe (25k customers in just 6 months) it was only a matter of time before more firms moved into the lucrative small-to-medium business (SMB) acceptance space. PayPal already have huge global SMB customer base by virtue of their e-commerce proposition so it was surely an obvious decision for them to play in this space and the recent launch of ‘PayPal Here’ saw 1,000 sign-ups per hour for the first 24 hours and over 200k sign ups in its first few weeks.
The rapid adoption of mobile acceptance products possibly highlights the lack of an adequate solution being offered to this merchant segment for many years. These new firms are simply responding to their unmet needs: SMBs want a cheap way to accept cards and often operate in places without a suitable infrastructure for a payment terminal, like a market stall for example.
Perhaps in response to their success, Verifone has entered the fray with their ‘SAIL’ product which appears to go a step further than the current “new world” offerings. Is this too much for SMBs or will this kill off the competition? Time will tell but one thing is for sure, paying with a card is now more likely to be an option than ever.
10 May 2012 – A new survey from Ovum, commissioned by Infosys, reveals that 75 percent of the European banks are still using outdated core banking systems, which is affecting their ability to accelerate growth. The research covered 65 C-level executives across European financial institutions and highlights that the lack of modern core banking systems is impacting the bank’s ability to meet changing customer demands quickly, and adapt to regulatory compliance mandates efficiently.
26 April 2012 – Today, Capgemini and Efma released the ninth annual World Retail Banking Report which found that while bank customers citing a “positive customer experience” increased modestly by seven percent globally from last year, customer retention is in flux. According to the Report’s Customer Experience Index (CEI), which surveyed over 18,000 bank customers across 35 countries, nine percent of customers are likely to leave their banks in the next six months while 40 percent are unsure they’ll stay long term.
23 May 2012 – The Chinese mobile payment market is virtually doubling in size every year and is expected to be worth more than US$80 billion with 441 million active users by 2015, according to the latest report from Kapronasia. China has already overtaken the US as the largest smartphone market in the world; the number of mobile payment users will dwarf other markets worldwide.
9 May 2012 – WorldPay, the global leader in payment processing, risk and alternative payments has today launched Optimising your Alternative Payments, an in-depth global whitepaper and interactive heatmap of the alternative payments landscape, and the varying cultural preferences of payment types by geography.
April 2012 – A varied group of industry stakeholders gathered in Orlando earlier this month for the first Social: Mobile: Payments Conference. While opinions varied on what technology would ultimately take hold—the cloud, near field communication (NFC), barcodes, carrier billing, etc.—speakers seemed to agree that the time for mobile payments has come. One big problem, however, is market fragmentation and the plethora of new players looking for their share of the revenue in an already-crowded value chain.
14 May 2012 – On the opening day of EBA Day 2012, Clear2Pay, the international technology provider of next generation payment solutions for financial institutions, announces the results of a SEPA Migration End Date survey it executed in co-operation with Finextra. Survey respondents indicate that they believe that the competitive space for SEPA will be with their corporate customers – and that they (89%) need to offer those customers better solutions and services. 87% of respondents also call for an increased and better representation of corporates in SEPA governance.
19 April 2012 – Three quarters of the world’s poor do not have a bank account, not only because of poverty, but also because of the cost, travel distance, and amount of paper work involved in opening one, says the World Bank. Those without access to formal banking often have to rely on money lenders who often charge high fees. The “unbanked” are also less likely to start their own business or insure themselves against unexpected events.
20 April 2012 – Article by Finextra – Twitter has overtaken Facebook as the social network most favoured by financial services firms, according to analysis from Corporate Insight, which singles out American Express’ use of the channel for special praise. Social media has evolved in a short space of time from an experimental communication tool used by a few forward‐thinking financial services firms into a nearly universal feature, says Corporate Insight.
7 May 2012 – MasterCard Worldwide today unveiled the MasterCard Mobile Payments Readiness Index (MPRI), an analysis of 34 countries and their readiness to use three types of mobile payments: person to person, mobile web commerce and mobile contactless payments at the point of sale. The MPRI found that while no two markets are the same, consumer readiness is the critical success factor to drive mobile payments adoption around the globe.
26 April 2012 – Online shopping is growing increasingly popular in the UAE, according to the results of a recent MasterCard survey. Results of MasterCard’s survey on online shopping behavior revealed that 42% of UAE shoppers accessed the internet for online shopping in 2011; up from 33% in 2010. The survey also found that shopping via mobile phones is increasing, with 15% of consumers surveyed planning to do so in the coming months.
8 May 2012 – The fees that Canadian merchants are charged to process credit card transactions are the target of a federal Competition Bureau tribunal in Ottawa. Kent Thomson, the lead counsel for Canada’s competition watchdog, told the tribunal in Ottawa on Tuesday that the system of fees charged when retailers allow consumers to pay with credit cards goes against competition rules and add up to $5 billion in fees for the credit card industry annually.
2 May 2012 – Americans are growing more frustrated with customer service and businesses are feeling the heat as consumers tell an increasing number of people about both their positive and poor service experiences. The 2012 American Express® Global Customer Service Barometer also found that consumers who have used social media for service wield the greatest amount of influence. They tell significantly more people about their service experiences, and say they’d spend 21% more with companies who deliver great service – compared to 13% on average.