Apple Opens NFC. Just off the phone with Apple. They were nice enough to treat me as a journalist and I was able to ask a few questions.
Apple Opens NFC
3
Tag Archives: google
Google Secure Payment Authentication (SPA)
Read First – Blog on SPA from Checkout.com
Background Reading – June blog eCom politics and Scenarios, and Identity, Authentication and Risk
What’s the big news here? SPA allows Google to stand at par with ApplePay in providing the best-authenticated checkout experience. Google looks to have taken TWO MASSIVE pieces out of the authentication process: 1) 3DS handshake (putitting in Cryptogram and 2) A step up from the Issuer (possibly – a significant portion of this blog). This is a generational improvement and massive simplificaiton of the current 3DS flow.
The mobile platform is key to authentication and Google is the preferred partner of every bank, merchant and network. Their challenge in SPA? Doesn’t seem Checkout.com coordinated with the networks on SPA (ie liability shift OR step up). I think it will get worked out as the quality of this innovation is just fantastic.
As I wrote in June, ApplePay 2.0 plans to cross the chasm from mobile only to desktop (as announced at WWDC). Google is proving that they have the same capability, as Chrome makes up about 10-12% of eCom and over 30% of guest checkout at most retailers; they are positioned well (particularly in Android markets).
Continue readingBank Transformation – Actions for Banks to Succeed in the Storm of Disruption
A Framework for Collaboration – Taking Part in Consumer Journeys
16 Page Blog – 3 Page Exec Summary
Part 2 of Future of Retail Banking (2023). This blog has been sitting at 60% for 2 months now. Sorry for the delay. A bull case for V/MA and service expansion.
A storm is brewing that will dwarf the impact the internet (V1/V2) had on established business models. There are multiple transformations occurring simultaneously: AI/ML, Web3, Digital ID, DLT, open mandates, FinTech, Wallets, ….etc. (see Web3 and Small Wins). While large orchestrators and big tech dominate today due to their virtuous cycles, new forces push for the “break up” of Big Tech and centralized data stores to make the internet more democratic and more privacy friendly.
Part 1 – Identity Models, Government and Governance Structures
This is a big topic, and I’ll get a few things wrong. My mechanism for correcting my viewpoint is this blog, where this community gives feedback. It’s the reason I write. I won’t get into the tech weeds in this blog series. When there is a need to drill down on a standard or tech, I’ll provide a link to documents providing an overview. The insight I’m attempting to provide surrounds the evolution, economics and value chain implications of various models.
Why read this?
Identity is the key shaping force across many domains (including payments) because:
- ID touches “everything”,
- ID is the “primary key” in trust, risk, contracts and value exchange
- ID is core to a well-functioning government (voting, taxing, regulating, …etc).
This breadth makes it challenging to sift through ID-related announcements and assess the implications. Thus, I’ve created three identity communities for my taxonomy:
- Government – Working to define identity as part of Digital Public Infrastructure (DPI). DPI has three legs: identity, payments and data exchange.
- Commercial – Platforms, Banks, Healthcare
- Web3/Blockchain/Social – Jack Dorsey is the unofficial spokesperson.
These communities find alignment in technology but are working toward different end goals with significant philosophical differences across communities, particularly regarding the role of government and near-term objectives. These differences surround the definition of trust, authority and governance structure, which is the focus of today’s blog.
New Blog Series – The Economic Models of Identity (and Trust)
Free Content
Happy New Year. I’m starting a new blog series in 2024 – The Economic Models of Identity.
Identity is the #1 shaping force in new payment schemes, Web3, blockchain/crypto and more broadly “trust” interactions in government, commercial and social (see Trust Networks). Most investors haven’t spent much time thinking about identity because it was the realm of tech geeks or bundled into the services we use (see Separating Identity and Payments). The reason to pay attention today? Identity is shaping a redesign of the internet’s infrastructure AND governments are defining new LAW on what constitutes a digital identity (ex India’s UIDAI and Europe’s eIDAS/eID).
Let’s unpack the word Idenitity to ensure a consistent taxonomy. While most people relate a drivers license or passport to identity, it is much more than that. Who are you? And who can answer that question? Are you a US citizen? Licensed Driver? Doctor? Skier? Great credit risk? While your SSN or DL# are legally issued identitiers that only the government can issue and authenticate, you are also biometrically defined and have credentials, behaviors, preferences and other attributes. Identity and the contexts in which it is used are the foundation of trust, contracts and relationships.
Continue readingAdios 3DS “Step up”.. Hello FIDO2
Payments and Identity – UPI continues to lead the world
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.
Payment Authorization – Under The Hood
Retailers should tread very carefully in direct issuer connections
My focus over the last 18 months has been identity, trust, authorization and assertions. Today I thought we would get under the hood a little on the technology of authorization and the current operational issues with a key network service: 3DS.
Tap to Pay – Growing the Network – $700B GDV Opportunity
~$700B GDV opportunity for breakout volume growth as the network could “double” in scale as every cardholder could become a “merchant” in 20-30 min.
This month was a first! During my 25 yrs in payments, I could accept a card payment (in person) with no additional hardware. Enrolling as a Square merchant took only 30 min and I was then live with Apple Tap and Pay. A fantastic experience! (see Square). This is a tremendous “team effort” by Visa (VAS), Apple (See Mobeewave blog) and Square (as PayFac).
Continue readingFedNow Hurdles and Opportunities
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.