Apple announced a new service at WWDC 2022 yesterday (Youtube – ~21:00 in). What is it and how does it relate to their recent acquisition of Credit Kudos?
Category Archives: mobile money
Apple Tap and Pay – Square and Why It is a Big Deal?
6 June 2022
Square’s stock (aka Block) took a big jump after last week’s announcement that they would also be a partner in ApplePay’s new ability to accept payments. Today I thought I would cover what this will (likely) look like and 5 reasons why Apple Tap and Pay is a big deal.
PIX Brazil – Short Blog
Brazil’s Central Bank is now recognized as the leading innovator. Both in PIX and CDBC launch this year.
Identifying new networks is a must for any investor. The growth rate of network businesses dwarf most other models as each node invests something in joining. Mobile has transformed the time for network effects to reach critical mass – moving from 20 yrs (think debit card and mobile phones) to months. When network effects take hold, Investors see opportunity in both the network core (owner) and the periphery. We also look at how new services will impact existing established players
Apple Pay Fees (Short Blog)
Thought I would give more detail on whats going on with V/MA, Issuers and Apple (from WSJ article yesterday Apple Pay Fees Vex Issuers). Perhaps I’ll collect a fee from the WSJ.. odd that I mention Apple Pay fees on Monday to have it come up in the WSJ on Tuesday. Oh well..
ApplePay’s 500% Growth
Most have seen Apple’s earning’s transcript, with following key ApplePay Excerpts:
- ApplePay users tripled
- Transaction volume up 500% YoY as Apple expanded to four new countries. It’s now available in 13 markets.
- 2 million small businesses are now accepting invoice payments via Apple Pay on the Web, and that the “Services” segment to which Apple Pay belongs saw revenue hit $7.17 billion,” up 18 percent year-over-year. category also includes major drivers like Apple Music and the iOS App Store.
Short Blog – Paypal / Vodafone
Walmart Pay
Background
- Walmart announces Walmart Pay
- Walmart remains supportive of MCX and is still part (my first hand knowledge)
- Walmart Pay does not use Paydiant, but is using QR code capture (my first hand knowledge)
- Currently Walmart Pay is not tokenizing (my first hand knowledge)
- Walmart has highly successful mobile app
- Walmart is #2 online retailer (AMZN $89B, WMT.com $12B)
- Walmart.com has 30M+ Cards on File (my estimate)
- WMT almost every retailer in loyalty
- Walmart and Visa/issuers have reached some sort of swipe fee settlement (~$5B)
- Walmart does not have a loyalty program, but rather ELP
- QR Codes are not an approved “card present” delivery channel and thus are CNP
- MCX is operational, but Target and WMT are the clear leaders
- ApplePay is making inroads to CVS, BestBuy and other MCX Participants
- JPM gave WMT/MCX flat fee payments 2 months ago for ChasePay
As I’ve stated before, there are 3 industrys that enable mobile payments: grocery, gas, transit (frequency of use). Given WMT’s scale, consumer loyalty, mobile success, cards on file and acceptance cost efficiencies this is a no brainer. My summary is that they have used their unique assets in a new and innovative way, with superb timing.