Frank Young – Contributor
What are banks talking about this week? How did Apple’s announcement impact them? While 15bps on 2% of eCom GDV is a nuisance, 15bps on 15% of eComm GDV is an earthquake.
Frank Young – Contributor
What are banks talking about this week? How did Apple’s announcement impact them? While 15bps on 2% of eCom GDV is a nuisance, 15bps on 15% of eComm GDV is an earthquake.
Winners: Consumers, Merchants, Banks, Networks and Affirm
Losers: Branded PayPal and Venmo
Apple’s WWDC is on Day 2. Today we will see significant enhancements to ApplePay and Wallet in forthcoming iOS18 (to be released this fall). Here are the highlights in order of impact.
ApplePay will be supported in every browser. This will be a game changer and dramatically increase payment volume flowing through Apple wallet (and their platform). Just last week, the WSJ published a great piece on why retailers hate that consumers make large purchases on their computers. Apple will expand ApplePay to support all browsers AND provide a major upgrade in experience, security and fraud.
Continue readingA 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.
Quick Take
Discover has been looking for a buyer for some time. Back in 2012 they were the launch partner for the Google Plastic card and positioned the opportunity with Google. While Google was interested in the network, there was no interest in taking on banking licenses and credit risk. Finding a buyer for the BUNDLE of Discover was their ongoing problem, with many BigTechs interested in the network only.
I’m usually just a cynic. Today, I’m constructive with specific suggestions for PayPal’s new executive team. Note that about 80% of your large institutional investors will read this..
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 readingThis week, I outlined several of the friction points in the US card payment network in US Payments Where to Invest. Today let me try to articulate a few reasons why US banks are attempting to build a new eCommerce Wallet (Paze) as well as some additional merchant commentary on their efforts.
New Payment Experiences
Topics today (pardon the typos)
The top questions coming out of Money 2020 were: is the US payments environment maturing? Are there still opportunities for break out growth? Where? Who is best positioned and why? Today I will be taking part of that on.
Before listening to anyone on this topic its important to get a feeling for experience. I’ve been fortunate to run two of the largest online banks: Citi and Wachovia. Wachovia was the very first customer of Yodlee (1999), a service our customers loved. My banks were also scraped endlessly, representing over 30% of our traffic and 20% of our call center complaints. We were also the largest PFM bank (think MS Money and Quicken), keeping our OFX servers up and running was key. After my banking life I spent time rearchitecting payment data flows from point of sale to payment at Google. Then spent 8 years creating Commerce Signals, a payment data business.
CPFB’s Proposed Rule