Recent news reinforces that the Payments Industry is continuing towards a full blown disruption change cycle. Within this cycle massive opportunities abound, rule books are rewritten and unfortunately a trail of casualties are left by those who didn’t adapt quickly.
Refreshingly this month, several leading organisations announced signing long term agreements in moves to build formidable collaborative teams of trusted partners, each agreeing to openly and jointly work together to capitalise on future opportunities.
Today, organisations are challenged by running two worlds in parallel; firstly, operating and enhancing the mainstream business, and then additionally addressing key areas such as mobility, social media and cloud computing to reengineer towards a future business. All with a backdrop of rapid global business change and the rise of consumer power. Managing these two, sometimes conflicting, worlds in parallel is a major focus for everyone.
Winning organisations are displaying an emerging theme of establishing long term partnerships with best-in-breed trusted 3rd parties to jointly build powerful propositions and capabilities to drive leadership and ensure consistent success throughout the future.
2012 promises to be one of those years to act smart and fast, or be left behind.
17 January 2012 – Strong growth in online shopping and debit card spending has resulted in a record year for Visa Europe as it announces its annual results which show that, for the first time, £1 in every £3 spent in the UK is now spent on a Visa card. Ecommerce spending accounted for 22% of all Visa spend in the UK, growing by more than 40% over the year. In the year ending 30th September 2011, debit spend on Visa cards topped £318 billion, a rise of 27% on the previous year.
13 January 2012 – We’ve received a lot of positive feedback since Visa announced a roadmap for the U.S. adoption of EMV chip cards and NFC-enabled mobile payment devices. There’s growing consensus in the industry that it makes a lot of sense to encourage investments in chip technology. That’s because it adds a layer of safety to transactions, through the use of dynamic authentication, as well as enhances international card acceptance. And it helps to build an acceptance infrastructure to support mobile payments.
20 January 2012 – The Association of Banks in Singapore (ABS) today announced that its member banks will step up measures to enhance the security of ATM cards and other payment cards. Since early 2010, ABS and its member banks have been introducing several measures to enhance the security of payment card transactions, giving customers greater assurance in preventing card fraud. These measures were completed under Phase 1 in 2011.
16 January 2012 – Digital banking is set to overtake branch networks as the main way customers interact with their bank by 2015.This is according to a new PwC report ‘The new digital tipping point’, which suggests that banks are missing a vital new source of revenue growth as they have been too slow to respond to the digital innovations that have radically changed business models and redefined customer experience. This is despite strong demand for digital banking products from consumers and the fact they are willing to pay for these.
2012 set to be the tipping point for mainstream contactless adoption
London, 22 December 2011 – Visa Europe today launched its second quarterly Contactless Barometer study. The Barometer canvassed perceptions of contactless technologies across the UK, Poland and Turkey, based on surveys of 1,700 banked individuals and in-depth panel sessions with around 500 contactless card owners per market.
23 January 2012 – The partnerships developing between payment service providers (PSPs) and IT vendors signal an important trend in the industry. For instance, Oracle ATG and IBM are validating integration with PSPs CyberSource and WorldPay, respectively, in order to better service their joint customers. PayPal, meanwhile, is negotiating a series of acquisitions to emerge as a complete end-to-end e-commerce solution provider. However, the objective of each model is the same: to gain access to the partner’s or acquired company’s customers and therefore expand the business.
16 January 2012 – VeriFone Systems, Inc., today, reveals its next generation payment solutions and invites retailers to reimagine interaction, mobility, security and globalization. New solutions introduced today expand VeriFone’s market-leading point-of-sale business with new multimedia, mobile technology, payment paradigms and cloud-based services that simplify and enhance the retail experience.
17 January 2012: Despite the challenging economic climate and threat of further global recession, a new report from Juniper Research finds that mobile banking users worldwide will reach 530 million by 2013, up from just over 300 million in 2011. Indeed, Juniper finds that mobile services are becoming a fundamental component of banks’ business strategies as they respond to the current financial crisis.
11 January 2012 – At CES today, eBay Inc. CEO John Donahoe announced that we’re projecting that PayPal will see $7 billion in mobile payment volume in 2012. In the Mobile Payments panel I participated in yesterday, I announced that PayPal exceeded expectations for 2011, reaching $4 billion in mobile payment volume. This is a huge increase from our original 2011 prediction of $1.5 billion and the $750 million in mobile payments we saw in 2010.
21 December 2011 – NTT DOCOMO, INC., KDDI CORPORATION and SOFTBANK MOBILE Corp. announced today their establishment of Japan Mobile NFC Consortium to coordinate the adoption of multiple international standards for near field communication (NFC) technologies incorporated in their mobile devices and services. Japan’s three mobile operators already offer Osaifu- Keitai™ (wallet phone) mobile services based on the contactless-IC smartcard called FeliCa®. Overseas, however, mobile operators and service providers are increasingly adopting Type A and Type B standards to develop growing markets for NFC services. In view of this worldwide trend, the consortium intends to work with mobile industry groups in Japan, including service suppliers and handset manufacturers, to incorporate compatibility with the Type A and B standards in the Japanese mobile ecosystem.
Mobile banking professionals from across Europe will gather in Barcelona in March 2012 for a day of networking and debate at MobeyDay, hosted by La Caixa and organised by the Mobey Forum and Finextra Research. Mobey Forum quarterly events have always provided an excellent platform for its members to network with peers and debate the key industry issues. Given the success of these events the natural progression is to launch a new annual MobeyDay event, which is open not only to Mobey Forum members but the wider global mobile financial services community.
17 January 17th 2012 – CHARGE Anywhere®, a leading provider of award-winning, secure mobile payment and payment gateway solutions, announced today the compatibility of an Audio Jack Magnetic Card Reader with CHARGE Anywhere®’s Mobile Payment Application for BlackBerry®. Compatibility of the Audio Jack Card Reader with CHARGE Anywhere®’s award-winning Mobile Payment Application for BlackBerry® and the PCI DSS Level 1 payment gateway, ComsGate®, provides BlackBerry® device owners with the most cost-effective solution to swipe credit cards anywhere, anytime.
19 January 2012 – A small restaurant in Utah is taking a stand against one of the biggest regulations affecting the payment security industry. Cicero’s Ristorante in Park City has launched a countersuit against their merchant acquirer after it seized money from the restaurant’s account for alleged violations of PCI DSS. News of the lawsuit has whipped up a furore about both the drawbacks and benefits of the PCI scheme, and whether it is in fact worth having at all.