US Payment Infrastructure is in the midst of completing a major renovation.
Let me preempt the #1 question most of you are about to ask “are card volumes at risk”? Nope, why on earth would banks want to walk away from the most profitable retail banking product in the history of man (see Future of Retail Banking)!?
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.
My #1 favorite new banking service in the US. Well done Akoya, TCH and member banks.
Continue readingIt’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
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.
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
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.
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.
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.