My largest holdings are card networks, and I’m very keen on their continued growth and sustainability of competitive advantage. My confidence is based on five broad themes.
Winning in Network of Networks: Collaboration
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Category Archives: Retail
Future Scenario – Impact of “Perfect” Authentication
A follow-up to my previous post covering Identity, Authentication and Risk
FIDO2, eID, Mobile Wallets, and other initiatives are rapidly advancing to a future of passwordless authentication. “Perfect Authentication” will be highly disruptive to all payment networks, methods and stakeholders. This blog outlines the rough economic impact, winners and losers in a future scenario. Today’s blog is not a dissertation but a “framework” providing puts and takes on disruption due to better authentication.
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.
Separating Payment and Identity
15 pages (summary is 4)
Follow blog from Payment Authorization – Under the Hood (ie working on a car engine), Trust Assertions – Identity will Define the Future of Payments and Role of Identity and Trust in eCommerce.
Today’s blog is one of my personal favorites, not only because of the topic but because of the leading experts in retail, identity, networks, and payments that collaborated and provided editing (thanks all). While I’m no longer the tech expert, I do have a unique view on the “inside baseball” incentives and realities of what is actually happening (behind the rules). Payments are not like a brand-new Ferrari operating to spec, they are a very messy business with complex rules, worn-out systems, unresponsive drivers and a broke racing team with no sponsor. This is a get-your-hands-dirty blog. Note that I’m open to feedback in case I’ve missed something
Outline
- Summary
- Survey of global identity initiatives
- How identity works in eCommerce today
- Technical example
- How identity improves CX and eCommerce payment flows
- Four future scenarios of identity and payments
- What should investors track
MRC Recap – Looking up – A Retailers Perspective On Payments
I’m glad I made the decision to attend my very first Merchant Risk Council event this week. For those that don’t know, MRC Vegas is the second largest payment event in the US (after M2020) but with a VERY different focus. MRC is attended by the “hands on” payment leaders from all the top merchants and the vendors that serve them: Stripe, Adyen, PayPal, V, MA, risk, fraud, …. Etc. Whereas M2020 is attended by FinTech, Crypto, Venture, Institutional investor, and strategy audiences, MRC is much more focused on making payments work.
SRC Focus – Airlines
Per my June blog BNPL – Travel Example, I laid out how Airlines were a logical focus for BNPL. It seems that Issuers are either reading my blog, or coming to the same conclusions as SRC is likely to launch first with Airlines.
Continue readingDriving Vision of Durbin? Bi-Lateral Connections?
I now have 70% confidence in the forces shaping Durbin (still no threat to V/MA).
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BNPL Travel Example – Short Blog
Short blog today on an example BNPL opportunity and the differences between a consumer BNPL solution like Apple Pay Later and Merchant integrated solutions from providers such as Affirm (or SQ/Afterpay see Three Flavors of BNPL). Today Air Travel and Vacation packages are the focus.
Three Flavors of BNPL
As is the case with every financial services product, BNPL will not be a winner take all market. Apple’s moves, together with Amazon/Affirm, will help establish the momentum behind BNPL as a viable credit alternative.
Continue readingeCom Innovation Success – Shop Pay
Short blog as follow up to yesterday’s blog on Acceptance Hurdles in eCommerce. Successful innovation requires a great new customer experience and/or economic model. The most recent success in the US is Shopify’s Shop Pay.