Payments and the Observer Effect

Most of you techie’s out there had a physics class at some point and can recall the Observer Effect in Quantum Physics: the act of observation can change the measured results. Observation in payments has become the second largest driver of margin

Most of you techie’s out there had a physics class at some point and can recall the Observer Effect in Quantum Physics: the act of observation can change the measured results. Observation in payments has become the second largest driver of margin and has enabled many new specialists…. so I thought I’d outline some broad thoughts and tell a few stories. 

Why is observation important? Payment behavior is truth marked data of what a consumer actually did (offline). While I may search for Ferrari’s, or visit dealership (mobile location) what I actually bought is much more important in predicting behavior and evaluating risk.  Purchase data is the most valuable data for that reason (and issuing banks had a lock on it.. Until about 5 yrs ago). The lock has been broken and payment data has become the “missing link” to unite heterogeneous data sets. 

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Perfect Authentication… A Nightmare?

This question is very similar to the story above on EMV. The engineer in me recoils at the thought that a sophisticated technology (which decreases risk), would not be welcomed within a market. To understand WHY, you must answer the question: WHO benefits from the risk reduction? If your business is risk management, and someone takes risk away, what is your business?

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Authentication – A Core Battle for Monetizing Mobile

Those of you with more than 15 yrs in the industry will remember dedicated T1 lines that moved data in secure pipes from one location to another. We now have VPNs, transaction signing and encryption that allows for use of generic pipes between COMPANIES. Authentication at a USER LEVEL will now permit yet a finer grained LEVEL of Secure Services and Data ACROSS companies. Today we have Cloud services from Apple, Amazon, Google but how do you navigate amongst them? How can a Start Up develop services that SPAN them? Authentication and is Key…. And MNOs may be best placed to deliver this service.

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Apple and NFC – Part 2

Could the new iPhone run Visa Paywave? sure.. however it may need an add on antenna.. my guess is that NFC in the next iPhone was not built around supporting someone else’s project (Visa/Banks) . This is the paradigm which must be broken. Don’t think of NFC in terms of payment, it is just another radio

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