RIP MCX
2
Data Leakage
10May 2016
Great article in the New York Times this weekend: Jamie Dimon Wants to Protect You From Innovative Start-Ups. Believe it or not I agree with Jamie.. consumers have NO IDEA of what they are giving up. There must be a chain of control on regulated data..
Consumer Tokens
Great article in Digital Transactions that I missed in February
PAR – Consumer Tokens, February 2016
Quote “When a transaction is initiated with an EMV payment token, the functionality of these applications can be impacted since the full PAN may not be available to merchants, acquirers, and payment processors,” a recent EMVCo document says.
Payments – Civil War?
Regulated companies like banks and MNOs must not only know who is using their data, but also HOW it is being used.. and when it is transferred, it must be destroyed. We help 1st party data owners create data products within their environment.. your data, your rules, your environment
As always sorry for the typos. This is an 8 page blog… a little long.. and not always linear…. corrections/comments are appreciated…
ApplePay in Browser – March 2016
News today from Jason at Re/Code – ApplePay in Browser this Year
OK.. so I was a year off! (see Blog ApplePay in Browser by Summer 2015).
Not much surprise here.. as I outlined in my January blog on topic ApplePay in browser has been for over a year. I don’t have time for a long blog so will make bullets on what I think are latest “big items”
The EMV of Payment Terminals – SHA-1
9 Mar
Never one to shy away from even the MOST ARCANE areas of payments… There is a firestorm in payments encryption right now.. SHA-1 is a hashing function (securing data for a counterparty without the use of public/private keys) that has long since been sunsetted by Microsoft, Google and others as “too weak” and “easily cracked”.
P2P Payments Update + MA/Vocalink
9Mar 2016
Short blog. I can’t believe it has been 5 years since I wrote Real Time Money Transfer in US. This week we see rumor that Mastercard is looking to make 1B GBP bid to buy Vocalink. Per my Apple and P2P blog there are 4 primary options for “real time P2P” in US:
- FIS/Vocalink/Paynet
- Mastercard
- Visa
- ClearxChange/Early Warning
- (FUTURE) Real Time Payments with TCH
Card Holder Present Update
Presented yesterday at KBW’s annual Payment Conference.. have a few updates in the rumor mill..
I predicted September of this year for CHP in in previous blog Card Holder Present last month. Issuers don’t like this one bit.. as there is no upside.. Merchants with large numbers of cards on file (Amazon, Google, Paypal, Walmart, …) will not tokenize until they obtain a risk based rate (Companies like Amazon manage fraud down to under 3bps).
Rumor is that one large issuer has been quite vocally against the new CHP rate coming into effect. My guess is that the issuers just funded $60M at The Clearing House (TCH) for them to create a new token utility based upon Bell ID…. and the banks want to use this beyond “faster payments”….
Transformation of Commercial Networks: Unlocking $2T in Value
18 Feb 2016
I’m in a network state of mind… We are in the midst of a massive economic transformation and I can’t quite put my finger on it. What influences how consumers and businesses are organized? What is changing? Who creates value? What new domains, networks and markets are being created? Where is margin flowing to and from? The hypothesis from Paul Graham’s Refragmentation blog has been keeping me awake at nights.
“that all these trends are instances of the same phenomenon. And moreover, that the cause is not some force that’s pulling us apart, but rather the erosion of forces that had been pushing us together.” Refragmentation
Last Mile Redesign (Processor-Merchant)
21 Jan 2016
My favorite blog of the year was written by famed UK computer scientist Paul Graham – The Refragmentation. Paul’s blog aligns very well to the work of 2 Nobel prize winners in economics: Oliver Williamson (2009) and his mentor Ronald Coase (1991). Both were focused on the factors governing the “nature of a firm”. (particularly Transaction Cost Economics). I covered how TCE relates to the sharing economy and the future of collaboration in my August blog Collaboration and the “Sharing Economy”.
If I were to pick the proof point for ‘refragmentation’ and TCE within the payments industry it would be processing. If payments is a network business.. processing is undergoing open access (think MCI/ATT), nodal redesign (think iPhone vs rotary), big data (democratized access), enterprise software (ERP/CRM), and direct sales (amazon) … ALL AT ONCE.