Visa Ooops – PR screw up on new Device Fidelity iPhone App

Device Fidelity is one of the premier MicroSD NFC players (other is Tyfone). Trying to beat Apple to market with their embedded NFC or enabling existing phones? My bet is that this one will have AT&Ts involvement. MicroSD is a great form factor for NFC, issue is who will pay the $15-20 for it and who will certify? AT&T has the best chance to make this successful and subsidize.. in order to bear this cost, AT&T must drive either transaction revenue (create a pre-paid card) or a new advertising service.

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Visa Acquires CyberSource for $2B

Cybersource will provide Visa with an enhanced portfolio of services which could address merchant needs, particularly in risk, compliance, payment/fraud operations. However the expansion of Visa into these services poses a substantial risk to its business model as it runs the risk of alienating acquiring banks and other processors. Currently, I would view that risk as small because of the tremendous issues associated with online (eCommerce) payment system integrity and fraud.

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Apple’s NFC Patent

Apple’s approach to controlling its ecosystem is not perfect, but is the right thing to do early stage as both technology and consumer behavior evolve (I remember my Apple IIe). Right now my bet on “mobile wallet” is with Apple precisely because of their ability to orchestrate such an extended ecosystem. This is going to be hot…

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Citi/Mastercard beats Visa/BAC to market

Will Citi/MasterCard beat AT&T/Visa to market with a US NFC sticker rollout?… Regardless of who is first out of the gate, I think it will be a win/win for both institutions as significant marketing money is necessary to get this moving. Citi has the upper hand w/ numerous NFC pilots, established card marketing and 55M card accounts. MasterCard will likely leverage the Blaze Mobile application.

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Mobile Money – Navigating in the Fog

Being an ex-Gartner guy I love to analyze the spin machine. What has been the return on the “mobile investment” made by established payment players (approx $500M in US/EU over last 2 years), or the $200M /yr that VCs (MobileMonday services estimate) have pumped in?

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Bumping payments? Paypal Bump

What I’m most impressed with is Paypal’s ability to extend itself in niches like this. Their open APIs and ability to extend “their rails” beyond internet merchants is 5-10 years ahead of what any other payment network can do.

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ATT-Discover Prepaid

ATT and Visa will be rolling out a pre-paid card staring next month. What will this bring? Will it take off like AT&T’s universal card? Will it be the “Tipping point” for mobile commerce, ushering in a new era where the mobile phone can transact with a wallet that spans the virtual and physical world?

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SEPA: Chicken or the Egg?

The over arching goal of SEPA is to make the EU a single market on “payment” par with the U.S. Perhaps the best way to start is not by incenting changes to “payments”, but to open the EU retail banking market. (Think of the US banks operating under a Fed charter). “All banking is local” can be the mantra ascribed to the EU today, with each country maintaining tight regulatory control over domestic financial institutions (i.e. M&A and Liquidity). Significant market forces could be unleashed when local banks can operate throughout the EU, and a German consumer can seek the best rate and apply for an account at a “Spanish” bank.

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