It is very easy to say that the Alternative Payments Methods; Mobile, Square, iZettle, e-Commerce, Cloud Wallets etc., are approaching mass and will “replace” cards in the future.
Appropriate historical analogies could be: “Cards are the end of Cash” – a statement recurring for about 40 years, or even the “Chip is the end of Magnetic Stripe” – recurring statement by some for over 20 years now.
The question surely is not whether there is a finite end to cards, but rather, what is the timing for any alternatives to become the default or dominant player? Currently there is massive positioning globally to take advantage of the disruption occurring, everyone from Fortune 100 companies right down to start-ups are highly active.
For us as businesses and consumers, timing is always the billion dollar question, quite literally in some cases! Could we be so brave as to say the current stage of disruption in mobile, e-commerce and payments as analogous to the NEXT “Dot Com Era”? If so, then another time of great opportunity and perilous decision making proceeds. The only certain winners in these times are those with very deep pockets riding many parallel solutions, and those that can be flexible and adapt extremely quickly so being constantly in the right place, or maybe, never be caught in the wrong place!
Never a dull moment in Payments!
22 March 2012 – A new mobile payment platform which will revolutionise cashless payments for consumers, businesses and the banking industry around the world was launched today in Singapore. Swiff, which was developed by SCCP Payment Services, will create a new global standard for secure and instantaneous cashless payments between individuals, merchants and banks, using mobile phones and tablets as credit/debit card terminals. Swiff already works on iPhone, iPod, iPad, Android and BlackBerry devices and will soon be available on Windows-based mobile devices.
San Francisco, CA, March 8, 2012 – Javelin Strategy & Research’s latest report examines the convergence of the latest mobile-social media technology cycle with mobile payments. The report explored consumers’ perception of brands and mobile banking and identifies the likely companies that will be leaders in mobile commerce. With almost $200 billion in combined 2011 revenues, Apple, Google, Facebook, and Amazon are well positioned to take the lead in mobile payments landscape. However, the top mobile payments spot is still up for grabs, as consumers trust PayPal, Visa, and their own banks for making financial transactions compared to mobile networks, social media, and online retailers.
28 March 2012 – Canada’s economy could enjoy a $32bn (£20bn) a year boost if the country’s government were to shift to a modernised digital payments system, according to a new report. The Task Force for the Payments System Review insists that without an overhaul of current processes, the nation stands to become much less competitive on the global stage.
6 April 2012 – Keith Rabois has already lived several successful lives in Silicon Valley. Like a lot of today’s tech bigwigs, Rabois started his career at PayPal, then moved on to become an angel investor in tech successes like YouTube, Yelp, and LinkedIn. Now he’s helping to run one of the fastest growing startups in San Francisco: payments company Square. In 2010, Square founder Jack Dorsey recruited Rabois to be the company’s Chief Operating Officer. Since then, the company has grown from a few dozen to more than 250 employees and has reportedly been valued at more than $1 billion. More than 1 million customers are using the Square reader and apps, and Square will probably process more than $4 billion in payments this year. And that’s all with minimal advertising and no direct sales force
16 March 2012 – So much for first-mover advantage. PayPal Here was unveiled today as not the first, not the second, and by many counts not even the third or even fourth small business solution designed to turn phones into POS terminals. And, based on what I’ve seen and heard so far, it was smart for them to wait. PayPal Here is a mash up of all of the “good” features of existing dongle-based solutions, and turbocharged with PayPal’s unique set of assets.
11 April 2012 – A Japanese bank is putting the financial safety and security of its customers in the palms of their hands. Ogaki Kyoritsu Bank announced today that starting in September, it will equip 10 ATMs with biometric authentication sensors that read its customers’ palms for identity verification, Tokyo’s Nikkei reported. Unlike other ATMs that use biometric sensor technology, Ogaki Kyoritsu’s ATMs do away with the cash card entirely, and use a scan of the person’s palm, along with a four-digit PIN and the customer’s birth date, as the means of verifying identity and withdrawing money.
5 March 2012 – WILMINGTON, Del.–(BUSINESS WIRE)–Barclaycard US, the payments business of Barclays in the United States, today introduced the Barclaycard Ring® MasterCard® card, the first social credit card to be designed and built through the power of community crowdsourcing. Driven by the influence of an online community of cardmembers, the new card will offer a low interest rate, low fees, simple terms and the opportunity for cardmembers to shape and share in the product’s financial success.
9 April 2012 – USA Technologies, Inc. (NASDAQ: USAT), (“USAT”), a leader of wireless, cashless payment and M2M telemetry solutions for small-ticket, self-serve retailing industries, today announced that data from its customer Knowledge Base shows that its recently introduced Two-Tier Pricing Program (“Two-Tier”) can be a valuable tool in moving the small-ticket industry to cashless payments. More specifically, cashless sales and usage data extracted from a diverse sample of USAT’s Two-Tier customer base, showed greater sales activity in the two weeks after deployment of the Two-Tier Pricing Program than before—an important insight for customers waiting to gauge the effect of two-tier on consumer behavior.
6 April 2012 – The National Payments Corporation of India has finalized the commercial launch of the proposed India card which would be a domestic alternative to the global payment processing firms. MasterCard is the second largest global payment solutions company in the world and provides a variety of services to support the credit, debit and related card payments of over 24,000 financial institutions globally and given the size of India, this could have an impact on MasterCard’s international transactions growth, which we discuss below.
4 April 2012 – Global m-payment transactions are expected to grow 97 percent per year, over the next 3 years, reaching a value of £591 billion by 2015. According to a report, released today by KPMG, the growth will be fuelled by consumer demand for devices with ‘near field technology’ – tablets and smart-phones able to interact with scanners at the point-of-sale and immediately transfer funds. It will also be driven by consumers’ growing desire to shop in environments that are ‘always on, always fast and always accessible’.
ATLANTA, April 1, 2012 /PRNewswire/ — Global Payments Inc. (NYSE: GPN), a leader in payment processing services, announced on Friday, March 30, 2012 that it identified and self-reported unauthorized access into its processing system. The company believes that the affected portion of its processing system is confined to North America and less than 1,500,000 card numbers may have been exported. The investigation to date has revealed that Track 2 card data may have been stolen, but that cardholder names, addresses and social security numbers were not obtained by the criminals. Based on the forensic analysis to date, network monitoring and additional security measures, the company believes that this incident is contained.
7 March 2012 – The latest payment fraud losses for 2011, released today by the banking and card payments industry show that credit card, debit card and online banking fraud levels have fallen again. This continued success is thanks to efforts by the industry, partners, and importantly, customers. Fraudsters’ activities in other areas have caused a minor increase in cheque and telephone banking losses. Fraud losses on UK cards fell 7% from £365.4m in 2010 to £341.0m in 2011, resulting in a three-year reduction of nearly 45%.
The Guardian – 7 March 2012 – The transformation of mobile phones into wallets could come as early as this summer after the UK’s three largest networks submitted plans to Brussels for a joint venture they hope will allow them to make money from the technology in Europe. Vodafone, O2 and Everything Everywhere, which owns T-Mobile and Orange, have applied to the European commissionto form a company that would create a mobile wallet platform and an advertising sales house that could reach every subscriber on their networks.
19 March 2012 – Britons sent two-thirds more money through Faster Payments in the last three months of 2011 compared to the previous year, according to the Payments Council’s latest quarterly statistical report. More than £76 billion was sent during 2011’s fourth quarter (up from £46 billion in Q4 2010) and the number of transactions increased by 23% year-on-year. 144 million Faster Payments were made in the last three months of 2011.
19 March 2012 – Over two thirds (68 per cent) of Financial Services (FS) companies believe their workplace technology will consist almost entirely of personal computing devices by 2025, according to a recent survey by Avanade, which aimed to challenge commonly held beliefs about the consumerisation of IT. These included executive perspectives on Millennials as the driving force, employee brand preferences, and hesitance of business leaders to embrace the trend.
28th March – A new report from Juniper Research finds that the mobile telecoms industry lost more than $58 billion last year – over 6% of global revenues – due to inadequate FM (Fraud Management) and RA (Revenue Assurance) processes. The report suggests that under a ‘nightmare scenario’ whereby operators fail to implement any remedial measures over the next five years, the scale of losses could rise five-fold by 2016.
6 March 2012 – Qatar National Bank (QNB) Group, Qtel, Oberthur Technologies and MasterCard Worldwide, today announced the launch of the first mobile Near Field Communication (NFC) payments program in Qatar as the result of a strategic collaboration. This announcement signifies the introduction of the first mobile contactless MasterCard PayPass™ payments program in Qatar via an NFC-enabled mobile phone and the first program to also offer consumers a contactless PayPass ‘sticker’ in the Middle East and Africa. The trial launch of the mobile NFC program took place in line with this year’s QITCOM Conference and Exhibition in Qatar.
March 5, 2012 – Isis™, the joint venture created by AT&T Mobility, T-Mobile USA and Verizon Wireless, announced today that VeriFone, Ingenico, ViVOtech and Equinox Payments will integrate and support the Isis Mobile Commerce Application in current and future product lines. The agreements with leading payment systems providers will help accelerate the wide scale introduction and adoption of mobile commerce. “Payment systems suppliers provide critical infrastructure for the development of mobile commerce,” said Scott Mulloy, chief technology officer, Isis. “Today’s announcement is an important step in enabling NFC technology adoption throughout the mobile commerce industry. It also validates the open platform approach being offered by Isis across multiple business sectors.”
5 March 2012. Ingenico, leading worldwide provider of payment solutions, has worked together with Banco Santander and Orange on the development in Spain of the first payment system with multi-brand NFC mobile, which will enable users in the city of Group Santander, near Madrid, to make purchases of any amount simply by putting their mobile telephone close up to the sales point terminal.