Category: Payments

Payments

Value of Annual U.S. Debit Card Transactions to Reach $2 Trillion by 2010

Colin Henderson

US debit card growth continues to climb.  Value of Annual U.S. Debit Card Transactions to Reach $2 Trillion by 2010: Financial News – Yahoo! Finance Packaged Facts projects that debit cards will continue to enjoy strong growth, with annual debit transactions exceeding $2 trillion by 2010. More and more debit cards are part of US life. With nearly half (48.2%) of U.S. adults carrying a debit card, it’s not surprising that debit is quickly catching up to credit cards and cash as a primary means of point-of-service and online transactions. According to Debit Cards in the U.S., a new report … Continue reading Value of Annual U.S. Debit Card Transactions to Reach $2 Trillion by 2010

Canada, Middle East, Payments, US

Global electronic payment volumes to double by 2010

Colin Henderson

In a study, designed to provide banks, payment processors and retailers with a road map for the next decade to help plan their payments business strategies, its indicated payments will double worldwide by 2010, but the details are more interesting. Finextra: Global electronic payment volumes to double by 2010 The annual number of electronic payment transactions, currently at approximately 210 billion worldwide, are expected to double by the end of the decade, according to research released by ACI Worldwide. The individual markets of different growth profiles: The Eastern Europe and Asia/Pacific regions are forecast to lead the world in electronic … Continue reading Global electronic payment volumes to double by 2010

Payments, US1 Comment

TfL decision to drop Oyster expansion, is to be expected

Colin Henderson

Courtesy of Payment News, FT reports that the costs associated with expanision of Oyster stored value cards, to cover other small payments has been dropped because its too expensive. Oyster has a proprietary POS terminal. FT.com / World / UK – TfL drops proposal to expand Oyster card use The transport agency had hoped to roll out a service this year that would have enabled passengers to use their Oyster cards – currently used on the London Underground, buses, and some trains – to buy low-value goods such as newspapers, coffee and sandwiches with “electronic money” that would be loaded … Continue reading TfL decision to drop Oyster expansion, is to be expected

Payments

Australia equalises Interchange costs for debit & Visa debit

Colin Henderson

Basic change, which seems to be designed to level the paying field in the Australian payments market, due to an unfair advantage previously accorded to Visa. Previous story about ANZ Visa debit here. As the Bank has previously noted, the current structure of interchange fees creates a strong incentive for financial institutions to promote the Visa Debit system over the EFTPOS system, despite the EFTPOS system having lower operating costs. If a cardholder makes a payment with an EFTPOS card, the institution that issued the card must pay around 20 cents to the merchant's bank. In contrast, if the payment … Continue reading Australia equalises Interchange costs for debit & Visa debit

Payments

Momentum builds towards cashless society (Tower Group)

Colin Henderson

Comments on cashless evolution, suggesting that by 2015 a “substantial share of consumer payments globally will have moved from cash to other payment mechanisms,” said Theodore Iacobuzio, managing director in TowerGroup. CRM Today: Momentum Building Towards a Cashless Society Highlights of the research include: Over time, TowerGroup believes payments will move increasingly toward a “pay-as-you-go” model, where consumers buy what they want wherever they are. But while payments will be made increasingly through clicks and texts rather than cash or even traditional plastic, the majority will still be fueled by traditional bank relationships and run through established payments networks and … Continue reading Momentum builds towards cashless society (Tower Group)

Innovation, Payments

WAMU challenges traditional bank charges

Colin Henderson

In a brilliant move WAMU eliminates outbound service charges on wires.  This makes eminent sense, since it will encourage people to build up balances in anticipation of sending the money to foreign locations.  This is supported by the free cheques, and free ATM withdrawals. The costs of money transfer to the Bank are becoming less and less. The important aspect is building the relationship and the balances. Washington Mutual Promotes Free Outgoing Wire Transfers to LA’s Latino Community at Fiesta Broadway Washington Mutual is making the process of wiring money more affordable by introducing  the new WaMu Free Checking(TM) account, … Continue reading WAMU challenges traditional bank charges

Payments

Dynamic Currency Conversion

Colin Henderson

I learned new term today, and captured it here for posterity.  It seems there is much discussion on this and the business case for it. Payments News: Nova Introduces Dynamic Currency Conversion – March 14, 2005 Dynamic Currency Conversion allows international cardholders in the U.S. the option to have their purchases instantly converted at checkout into their local currency. Currency conversion is calculated at a competitive exchange rate, and the U.S. dollar amount, conversion rate, and home currency amount are all printed on the receipt. Merchants, MSP’s and other NOVA partners have the opportunity to share in the revenue generated … Continue reading Dynamic Currency Conversion

Payments, Smart Cards, US

Up to 25 Million US Mobile Phones Could Also be Mobile Wallets by 2011

Colin Henderson

Up to 25 Million US Mobile Phones Could Also be Mobile Wallets by 2011 As many as 25 million wireless phone subscribers in North America could be using their mobile phones as mobile wallets by 2011 The business model is more versatile than that proposed and failed in the 90's. Unlike M-commerce, the mobile transaction concept touted in the 1990s that never took hold, the mobile wallet is a much more versatile application that includes elements of mobile transactions, as well as other items one may find in a wallet, such as membership cards, loyalty cards, and other forms of … Continue reading Up to 25 Million US Mobile Phones Could Also be Mobile Wallets by 2011

Payments, US

Interchange fees are under pressure

Colin Henderson

As merchants complain, and consumers begin to realise the extra charge they are in fact paying to subsidise the interchange fees, its only a matter of time before alternatives arise.

Transaction Processing | Interchange wars: Merchants tug networks for change | ATM Marketplace Research

BY Missy Baxter, contributor • Consumer advocates say rising interchange fees are a serious problem, costing cardholders and merchants a total of at least $25 billion each year. Last month, dozens of protestors demonstrated against rising interchange fees outside the Javits Center in New York during the National Retail Federation’s annual convention.

Recently we saw rumours of Bank of America opting out, by creating their own network.  With Banks of that scale this alternative becomes more viable.  Now we see the Fed stating they will stay out of it, meaning they won’t regulate.

Relevance to Bankwatch:
Interchange fees and the financial model for payments will be a new frontier for banks to re-invent aspects of their business.

Continue reading “Interchange fees are under pressure”