Payment Data.. Banks are NOT the problem
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Paypal is on a TEAR.. iZettle and hyperWALLET
Note: I’m not subjective on this one as I’m both an investor and former BOD member of hyperWallet. Of course I’m biased on all of my others too.. but just don’t have much of a financial stake.
Paypal has been on a tear in 2018, and is the leading payment stock performer in last 12 months – up over 60%.
SRC and W3C
I don’t like being a long toothed payment historian…. So please pardon my reluctance here… and let me know of any errors.
UPDATE – Nov 29 2022 – Note that I have conflated the relationship between SRC and 3DS 2.0. 3DS 2.0 is the authentication protocol used by SRC. 3DS 2.0 has been widely adopted as a mandatory replacement to 3DS 1.0. Part of the driver for adoption was the EU SCA mandate. SRC has NOT been widely adopted as it is a fairly broken consumer experience at the moment.
Data Tipping Point.. Good things will happen
Recent issues with Facebook, Equifax, GDPR compliance, … have brought us to a tipping point in data. The basic structure of how data is: permissioned, shared, used, accumulated, analyzed, sold, regulated, … must change. Google and FB operate in a Big Data 1.0 architecture powered by the “virtuous cycle”. Edward Snowden showed us how the NSA also acts in this centralized model as a data vacuum (not so virtuously). Literature and entertainment have created broad awareness of the dangers of centralization and loss of privacy: 1984, the Borg, The Circle, Black Mirror, … etc.
Tokens and the Trojan Horse
I can’t believe I’ve been writing about this stuff for almost 10 yrs. If any of you have suffered through my 20 blogs (on tokens) I certainly don’t want to rehash anything.. just bring everyone up to speed on what I see as major issues on the horizon for V/MA, Issuers and Merchants.
Headline: Visa and Mastercard have made it easy for millions of businesses and billions of consumers to work together consistently. V/MA are a thing of beauty, creating incentives for multiple parties to invest in payments (and grow network).
Banks as a Data Business – Example Amex Advance/Acxiom
Traditionally the core of bank margin is in risk management. The core of risk management is data.. thus Banks have been the among the best data businesses (as IBM knows). Banks “learn” about their customers through bank interaction: payroll, card transactions, lending. This has helped banks make better risk decisions (both credit and fraud/identity). Within the bank data cycle the traditional use of data is for an internal benefit: risk and cross sale of the bank’s products and services (not that of consumers or merchants). However the “virtuous cycle of banking data” is very different from that enjoyed by Amazon and Google, both in the scale and type of data and consumer facing use.
PayPal surpasses Amex in Market Cap
What to expect from Money 2020?
Money2020 is in 3 weeks. This is the first year that Anil and Jonathan are no longer running the show since selling the conference (see Recode). While I’m anxious to see all of my friends, I’m also anxious to see what the new format will bring. Continue reading
Equifax, Facebook and Dangers of Centralization [of Data]
Equifax. It’s hard to sit on sit my hands and not write on this one. My perspective is shaped through running 2 of the largest online banks in the world, developing state of the art fraud prevention systems with the top 20 banks, working with Google and today creating Commerce Signals.
Enron has new competition for the company name that denotes loss and fraud. Equifax may be the single largest breach of consumer information in history…. It is everything from social to DOBs, DL #s, …. How did Equifax get our data?