My summary analysis
Continue readingApple opens NFC to developers due to EU pressure
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PayPal’s Shock to the world
Short Blog. I’m sorry for the delay on part 2 of the Govenance models for identity. I’m on my 14th update.. Will get out soon.
In the news today. PayPal’s Alex Chriss said ““There hasn’t been a lot to celebrate over the last few years. Innovation has been slow,” Chriss responded. “I love being an underdog. I will take all of that feedback and we’ll shock the world.”.
PR Today
Shock is the right word.. Just not what Alex was hoping for as the stock dove 5% immediately after the announcement. IMHO the market reaction is spot on. I’ve spent 15 yrs in retailer data, offers, wallets and etc, founding Commerce Signals (now part of Transunion).
New Blog Series – The Economic Models of Identity (and Trust)
Free Content
Happy New Year. I’m starting a new blog series in 2024 – The Economic Models of Identity.
Identity is the #1 shaping force in new payment schemes, Web3, blockchain/crypto and more broadly “trust” interactions in government, commercial and social (see Trust Networks). Most investors haven’t spent much time thinking about identity because it was the realm of tech geeks or bundled into the services we use (see Separating Identity and Payments). The reason to pay attention today? Identity is shaping a redesign of the internet’s infrastructure AND governments are defining new LAW on what constitutes a digital identity (ex India’s UIDAI and Europe’s eIDAS/eID).
Let’s unpack the word Idenitity to ensure a consistent taxonomy. While most people relate a drivers license or passport to identity, it is much more than that. Who are you? And who can answer that question? Are you a US citizen? Licensed Driver? Doctor? Skier? Great credit risk? While your SSN or DL# are legally issued identitiers that only the government can issue and authenticate, you are also biometrically defined and have credentials, behaviors, preferences and other attributes. Identity and the contexts in which it is used are the foundation of trust, contracts and relationships.
Continue readingHow will eCom evolve in next 5 yrs
Adios 3DS “Step up”.. Hello FIDO2
Why are US Banks Building a Wallet?
This week, I outlined several of the friction points in the US card payment network in US Payments Where to Invest. Today let me try to articulate a few reasons why US banks are attempting to build a new eCommerce Wallet (Paze) as well as some additional merchant commentary on their efforts.
US Payments – Where to Invest
New Payment Experiences
Topics today (pardon the typos)
- Are US payments still an attractive area for investment and growth? If so, where are the opportunities?
- High level view of the payment landscape and areas of friction
- Consumer Journey – how to unlock new consumer experiences
- Where will innovation come from?
- Core areas for improvement?
- Who are the best providers? Wallets as the new metaphor
- Challenges with Issuer-led innovation (ie PAZE)
The top questions coming out of Money 2020 were: is the US payments environment maturing? Are there still opportunities for break out growth? Where? Who is best positioned and why? Today I will be taking part of that on.
Open Banking in US – Quick Take CPFB Proposed Rule
Before listening to anyone on this topic its important to get a feeling for experience. I’ve been fortunate to run two of the largest online banks: Citi and Wachovia. Wachovia was the very first customer of Yodlee (1999), a service our customers loved. My banks were also scraped endlessly, representing over 30% of our traffic and 20% of our call center complaints. We were also the largest PFM bank (think MS Money and Quicken), keeping our OFX servers up and running was key. After my banking life I spent time rearchitecting payment data flows from point of sale to payment at Google. Then spent 8 years creating Commerce Signals, a payment data business.
CPFB’s Proposed Rule
Fed Proposing New Rates for Durbin
CCCA – Durbin II – Complex Politics and Consequences
CCCA (Credit Card Competition Act) has been a topic of late, with questions such as: will the bill pass? What will be the consequences? Who will win?
Today I’m providing a brief update on where the CCCA bill stands, and my view on industry consequences in the unlikely event that it passes (previous blog July 2022). The summary? I don’t think the bill will pass. What elected representative wants to be seen killing consumer card rewards in an election year? If CCCA does pass, it will take 6 yrs to implement and the consequences will be borne by Issuers (and consumers) with some added volatility to V/MA. V/MA win when interchange is reduced (ex EU IFR in 2015 – see blog).