Payments developments around the globe has mobile commerce taking off across southeast Asia, card swipe fees and surcharges on the hotseat in Australia and New Zealand, foreign card players are facing an easier than expected time entering Chinese marketplaces while PayTM is pushing hard for its Payment Bank in India.
Payments developments around the globe has mobile commerce taking off across southeast Asia, card swipe fees and surcharges on the hotseat in Australia and New Zealand, foreign card players are facing an easier than expected time entering Chinese marketplaces while PayTM is pushing hard for its Payment Bank in India.
One of the most natural places for a payment facilitator is within a do-it-yourself home improvement chain. The chains already attract plumbers, electricians, masons and every other kind of contractor, almost all of whom have to sell their services—in effect, reselling that chain's products in something akin to a value-added reseller (VAR)—to consumers. Most importantly, those consumers want convenient ways to pay, which is rarely something contractors offer—but the home improvement chains but are interacting with does.

Home Depot is already toying with this model, but a recent announcement from Lowe's makes this PF model almost irresistible.

One of the most natural places for a payment facilitator is within a do-it-yourself home improvement chain. The chains already attract plumbers, electricians, masons and every other kind of contractor, almost all of whom have to sell their services—in effect, reselling that chain's products in something akin to a value-added reseller (VAR)—to consumers. Most importantly, those consumers want convenient ways to pay, which is rarely something contractors offer—but the home improvement chains but are interacting with does.
Even in payments, a little candor can go a long way, especially in public CEO statements about issuing a new kind of payments card. This comes from a British company called Mondo, which is about generate MasterCard Prepaid Debit cards issued by Wirecard Card Solutions, which is a payment facilitator as well as being a prepaid issuer.

Still, it's not often that a payments CEO pledges that customers will have headaches—and yet Mondo CEO Tom Blomfield did just that when introducing the Alpha version of his card.

Even in payments, a little candor can go a long way, especially in public CEO statements about issuing a new kind of payments card. This comes from a British company called Mondo, which is about generate MasterCard Prepaid Debit cards issued by Wirecard Card Solutions, which is a payment facilitator as well as being a prepaid issuer.
For the world's largest e-commerce company, Amazon certainly had a busy payments week this week, from opening a physical bookstore integrating online capabilities to pushing its Amazon button for third-party mobile apps. But it's most PF noteworthy move this week was Amazon's choice to give up on Local Register.

Local Register was a payments processing effort that focused on the exact kind of smaller merchant that has gravitated to Square. And Amazon's initial promotional pricing was set lower than Square, on the rationale that price is everything for a small merchant. Apparently not.

For the world's largest e-commerce company, Amazon certainly had a busy payments week this week, from opening a physical bookstore integrating online capabilities to pushing its Amazon button for third-party mobile apps. But it's most PF noteworthy move this week was Amazon's choice to give up on Local Register.
When Visa announced Monday (Nov. 2) that it was dropping $23.3 billion to reunite with Visa Europe after the pair functioned as independent companies for eight years, it had a great deal of significance to the PF community. Given the extreme difference in rules between the U.S. payments standards and the European Union, it has been challenging for Visa to deliver global consistency, especially with compliance.

Payment facilitators, for example, can become payment service providers "without the help of a bank, something that cannot happen here" in the U.S., said Deana Rich, president of Rich Consulting and also Partner/Director of Strategy for PaymentFacilitator.com. "Also, EU can be a little more lax on some compliance issues. So, once the dust settles, it will be easier for Visa to level set the Core Rules playing field. Visa often has different rules for different regions, but the EU is drastically different in places. Visa may now be able to tighten up a few things in the EU. Or, maybe, just maybe, learn from the EU and loosen a few things up here (in the U.S.). I believe the former is much more likely."

When Visa announced Monday (Nov. 2) that it was dropping $23.3 billion to reunite with Visa Europe after the pair functioned as independent companies for eight years, it had a great deal of significance to the PF community. Given the extreme difference in rules between the U.S. payments standards and the European Union, it has been challenging for Visa to deliver global consistency, especially with compliance.
In a payment facilitator-focused fight that could be painted as Wall Street lobbyists against Silicon Valley lobbyists, a tech group—consisting of Amazon, Apple, Google, Intuit and PayPal—has created a payments lobbying group solely designed to counter the influence of traditional financial players, including Visa, MasterCard, Amex, Chase and Citibank. The group announced its formation on Tuesday (Nov. 3).

The new group calls itself Financial Innovation Now (FIN) and argues that it wants to persuade politicians to go a different route. Complicating matters is the diversity of the FIN group. The concerns of Amazon, Apple and Google, for example, are aligned, in that they are major financial players in retail, hardware, mobile and search engines that are exploring payments initiatives, initiatives that are likely to remain secondary to their primary revenue lines. But PayPal and Intuit are much more closely involved in financial services, with PayPal being every bit as much of a pure payments player as Visa.

In a payment facilitator-focused fight that could be painted as Wall Street lobbyists against Silicon Valley lobbyists, a tech group—consisting of Amazon, Apple, Google, Intuit and PayPal—has created a payments lobbying group solely designed to counter the influence of traditional financial players, including Visa, MasterCard, Amex, Chase and Citibank. The group announced its formation on Tuesday (Nov. 3).
In this week's wrap of global payments developments, we have payment stats from Egypt that are more lack-of-payment stats, U.K. payments security testing, a Swedish payments spin-off and a new mobile bill pay push in Australia.
In this week's wrap of global payments developments, we have payment stats from Egypt that are more lack-of-payment stats, U.K. payments security testing, a Swedish payments spin-off and a new mobile bill pay push in Australia.
When JPMorgan Chase on Monday (Oct. 26) promised new mobile capabilities for its online Chase Pay program next summer, it chose to take a decidedly retailer-oriented approach. With the lures of lower interchange fees plus all of the fraud cost protections of the EMV liability shift without having to accept EMV, Chase has given retailers concrete reasons to push Chase Pay over other payment methods.

The Chase announcement named MCX (and specifically members Walmart, Target, Best Buy and Shell) as premier partner. Interestingly, the interchange reduction effort that caused MCX to form years ago but had been all but abandoned by the group recently is the centerpiece of Chase's 2016 plans. What MCX couldn't get on their own was handed to them by Chase.

When JPMorgan Chase on Monday (Oct. 26) promised new mobile capabilities for its online Chase Pay program next summer, it chose to take a decidedly retailer-oriented approach. With the lures of lower interchange fees plus all of the fraud cost protections of the EMV liability shift without having to accept EMV, Chase has given retailers concrete reasons to push Chase Pay over other payment methods.

The Chase announcement named MCX (and specifically members Walmart, Target, Best Buy and Shell) as premier partner. Interestingly, the interchange reduction effort that caused MCX to form years ago but had been all but abandoned by the group recently is the centerpiece of Chase's 2016 plans. What MCX couldn't get on their own was handed to them by Chase.

If you’re still not convinced of the power of the PF model, prepare to be so. Square, perhaps the leading payment facilitator, with 2 million active customers, has finally made it’s financials public via its S-1 filing, and its losses are staggering.

How could this company have attracted private valuations in excess of US$6 billion? Simple: by being a great company with a great plan in an emerging market. Despite being on target to accumulate half a billion in losses in a four-year period, it is a robust business, with solid management on the brink of profitability. Its losses do not result from negative business factors, but rather because management is so excited by its opportunities that it is taking a Amazon-esque approach, forgoing short-term profits to invest in its many future opportunities. One should view the magnitude of the losses not as a negative, but rather as indicative of the magnitude of the opportunity.

If you’re still not convinced of the power of the PF model, prepare to be so. Square, perhaps the leading payment facilitator, with 2 million active customers, has finally made it’s financials public via its S-1 filing, and its losses are staggering.
Welcome to PaymentFacilitator.com, your home for an independent and analytical take on the payments issues of concern for the PF community. For our take on the major changes impacting payment facilitators and why this editorial community is needed right now, please drop by our About Us page.

It seems, though, this Letter From The Editor is best used to not promise what we'll deliver in the near future, but to tell you what we are delivering to you right now and why those pieces have the information that you're simply not going to find elsewhere today, especially from the various payments media.

Welcome to PaymentFacilitator.com, your home for an independent and analytical take on the payments issues of concern for the PF community. For our take on the major changes impacting payment facilitators and why this editorial community is needed right now, please drop by our About Us page.

It seems, though, this Letter From The Editor is best used to not promise what we'll deliver in the near future, but to tell you what we are delivering to you right now and why those pieces have the information that you're simply not going to find elsewhere today, especially from the various payments media.

A cyberthief walks into a bank branch, fully prepared to impersonate his intended high-net-worth victim. Not only is he equipped with fake IDs in the victim's name, lots of personal information courtesy of social and search engine research, but the thief has even taken the precaution of breaking into his victim's social accounts and replacing his thief-like face for the victim's on the victim's own social sites. If anyone tries to check on the Facebook or LinkedIn site of the victim, the thief's face would be confirmed.

The banker in this case sits beneath a tiny video camera, one that is aimed at the seat where customers sit and specifically the facial area of those customers. Controls of the banker-facing screen allow the image to be precisely aimed for customers of varying heights. And while the banker is pitching her safe-deposit boxes and other bank services, software does a quick check on the thief's face. Sure enough, it matches the social media images—but the software notes that those images were all recently changed. The software's database maintains a record of the last 10 images of everyone it can find—and that history of images foiled our thief's efforts.

A cyberthief walks into a bank branch, fully prepared to impersonate his intended high-net-worth victim. Not only is he equipped with fake IDs in the victim's name, lots of personal information courtesy of social and search engine research, but the thief has even taken the precaution of breaking into his victim's social accounts and replacing his thief-like face for the victim's on the victim's own social sites. If anyone tries to check on the Facebook or LinkedIn site of the victim, the thief's face would be confirmed.

The banker in this case sits beneath a tiny video camera, one that is aimed at the seat where customers sit and specifically the facial area of those customers. Controls of the banker-facing screen allow the image to be precisely aimed for customers of varying heights. And while the banker is pitching her safe-deposit boxes and other bank services, software does a quick check on the thief's face. Sure enough, it matches the social media images—but the software notes that those images were all recently changed. The software's database maintains a record of the last 10 images of everyone it can find—and that history of images foiled our thief's efforts.

Given the huge importance of small merchants in the U.S. (especially one-location shops, which account for overwhelmingly more retail locations than any other merchant size segment), it's impressive how little attention has been paid to how inappropriate chip and PIN is for those merchants.

In the wake of the U.S. EMV liability shift that kicked in on October 1, there’s been no shortage of debate about Chip and PIN vs. Chip and Signature. Once again, our old friend, the Durbin Amendment, is having its say. And for all the high-minded security-oriented thoughts being dished out, along with the many biased special interests trying to influence the debate, the small and micro-merchant have been left out, as usual.

Given the huge importance of small merchants in the U.S. (especially one-location shops, which account for overwhelmingly more retail locations than any other merchant size segment), it's impressive how little attention has been paid to how inappropriate chip and PIN is for those merchants.

In the wake of the U.S. EMV liability shift that kicked in on October 1, there’s been no shortage of debate about Chip and PIN vs. Chip and Signature. Once again, our old friend, the Durbin Amendment, is having its say. And for all the high-minded security-oriented thoughts being dished out, along with the many biased special interests trying to influence the debate, the small and micro-merchant have been left out, as usual.

At any industry event such as Money2020, companies try and roll out new offerings—even if what they have to say isn't that new or interesting. But in reviewing the self-perpetuating avalanche of accolades, found a few interesting tidbits with that Monday dateline.

New stats from eMarketer: In 2015, mobile payments will total $8.71 billion in the US, with users spending an average of nearly $376 annually using their mobile phone as a payment method. By 2016, total mobile payment transactions will reach $27.05 billion, with users spending an average of $721.47 annually. Total mobile payment sales will rise faster than average spending per user in 2016 because of the growth in the number of overall users of the technology. Mozido confirmed a gateway platform that is optimized for trade between the U.S. and China. Less significantly, the company also announced the availability of it HCE product.

At any industry event such as Money2020, companies try and roll out new offerings—even if what they have to say isn't that new or interesting. But in reviewing the self-perpetuating avalanche of accolades, found a few interesting tidbits with that Monday dateline.

New stats from eMarketer: In 2015, mobile payments will total $8.71 billion in the US, with users spending an average of nearly $376 annually using their mobile phone as a payment method. By 2016, total mobile payment transactions will reach $27.05 billion, with users spending an average of $721.47 annually. Total mobile payment sales will rise faster than average spending per user in 2016 because of the growth in the number of overall users of the technology. Mozido confirmed a gateway platform that is optimized for trade between the U.S. and China. Less significantly, the company also announced the availability of it HCE product.