Frank Young – Contributor
What are banks talking about this week? How did Apple’s announcement impact them? While 15bps on 2% of eCom GDV is a nuisance, 15bps on 15% of eComm GDV is an earthquake.
eCom – Politics and Scenarios
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Category Archives: Uncategorized
Akoya – Short Blog
My #1 favorite new banking service in the US. Well done Akoya, TCH and member banks.
Continue readingDOJ Probe – Network Tokenization – 2023
It’s hard to believe I’ve been writing about payment tokenization for 11 yrs. Tokenization is an overloaded term with multiple definitions. Last week McKinsey wrote a fantastic article on crypto tokenization, this note is about the tokenization of card numbers (PAN to DPAN) performed by network tokenization services like Visa Tokenization Service (VTS) and Mastercard Digital Enablement Service (MDES).
This week the US DOJ opened a probe into network tokenization services (Bloomberg). The specifics of the probe are not known
Payments and Identity – UPI continues to lead the world
Short 4 page blog
I’ve written heavily on payments, trust networks and identity. Today I’m providing an example of how UPI, powered by UIDAI’s centralized identity, is creating a new cannon for next-generation payment networks and trust.
I believe that mobile platforms are well placed to learn their lessons in India and create a new phone based network agnostic identity platform that will drive a significant change to payments, the internet and how we manage trust with counterparties.
Short Blog – Apple Savings
Apple Launches Pay Later
https://www.apple.com/newsroom/2023/03/apple-introduces-apple-pay-later/
Apple Pay Later was announced at Apple’s WWDC on June 6, 2022 (Youtube – ~21:00 in). I covered the details last year in Apple Pay Later – What is it?
Today it is going live in a limited rollout. Summary points
FedNow Hurdles and Opportunities
Short Blog – Follow Up to Last Week’s FedNow Update
I’ve got 4 blogs in queue with Part 5 – Future of Retail Banking coming next week. I’ve been asked to expand beyond my pro-network bent into areas like FedNow, PayPal, Stripe and Asia… etc and I will oblige. For today, drilling down on FedNow’s opportunity and the key barriers for “break out growth” (expanding on the last 2 bullets within 22 Feb FedNow blog). Feedback appreciated.
FedNow Update – Short Blog
My last blog on topic was less than a month ago Real Time Payments in US – Strategic Shifts (Jan 2023), and also FedNow (Dec 2021). Will thus keep this blog to summary bullets.
- FedNow launching this summer with almost 100% of US merchant focused banks participating. At launch, both credit and debit ( Request for Payment -RfP) transactions will be supported.
- Great summary interview last week from FRB’s Mark Gould
- Back in 2013, the Fed requested comments on a real-time payment system. In general, consumers don’t seek to pay their bills faster, nor do consumers have issues in receiving their payroll deposits late. The card environment works very well, particularly for debit. Emergency bill payment has been the only well-defined consumer need for speed (see Starpoint’s 2013 response to Fed).
SRC – Why Now and What is the Opportunity?
Short blog. What opportunity are top US issuers chasing with an SRC wallet?
During my talks with top acquirers, I gained new insight into eCommerce volumes. As a committed ApplePay user I was shocked to hear that ApplePay use in browser is significantly under 5% (even in iOS/Mac devices). Per my blog on intersections, the dynamic is due to both Chrome vs Safari and merchant adoption.
Innovation in Networks – Part 4
The Strategic Innovation Era
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This blog has been sitting at 80% for almost 3 months. Sorry for the delay. This was a 30 page blog that I slimmed down to 16. Thus the long summary section. This blog is focused on networks and their ability to: 1) internally charter their own evolution, 2) grow network of supporting stakeholders, 3) stimulate network growth, and 4) encourage investment/innovation. Why read this? Payment innovation is set to grow Global GDV by 50% (above baseline) over the next 5-7 yrs. Today’s blog is a basis for this hypothesis.
A very long blog with 3 page summary below