Pay By Bank – Where does it work and why?

Pay by Bank (aka Push Payments) are tremendous efforts driven by local market bank groups. Their core success is in cash replacement (ex P2P) and where there is high consumer-merchant trust (ie bill pay/recurring payments). Data clearly show that Push Payments are NOT a threat to V/MA but part of a rising electronic payment “tide” that lifts all boats. 

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Friday I was a tad “let down” in the Sionic/TCH/MX release of Pay-by-Bank. Per my blog on Google/TCH launch and Google P2P I was anticipating something much bigger. To be clear I firmly believe that TCH is working on an “ApplePay Competitor”, which will entail TCH tokens inside of Google’s phone, but this will be 3-6 months out.  Per the blogs above, I see neither pay-by-bank nor TCH Tokens in Google Pay as a threat to V/MA. 

Today I thought I would drill down into “pay by bank”, the dynamics of why it works in some markets, and why I see little threat to V/MA in replacing core cards in eCom or at POS.

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