Random Thoughts – Modularity and Trust

Trust in a transaction. In another one of my favorite books  (Design Rules: modularity) there exists the concept of trust between physical components of an integrated system. This book stands in contrast to Nobel Economists’ work in defining the “Firm” and organizational boundaries in Transaction Cost Economics (TCE). But the technical theory of modularity is amazingly consistent with the concepts of “boundaries” in TCE. In modularity, there are 4 core rules for separating technical components:

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Role of Identity and Trust in eCom

Please excuse typos.. Editing not complete. I had a great compliment this week: “Tom you write so dense.. why are you so different”? I’m not an analyst or a blogger, but a guy that has run operational businesses and led venture investments. The only great thing I’ve ever done in life is to meet great people with passion and ability to execute on a vision. This blog is how I chat with all my colleagues. Glad others find it useful..

This is a rather long blog.. if you don’t have time read the wrap up at the end which is a summary of key points.

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Continuing on from yesterday’s blog on Authentify – Bank ID Service, I thought I would outline the role of identity in eCommerce and the problems to be solved. Although most of you know me as a payments guy, I also have deep roots in data working directly with retailers, AdTech, Google/FB and media (in addition to issuers/acquirers/networks). In looking through eCommerce articles I couldn’t find one relating to identity (from a big picture perspective).. So I thought I would write one.

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Controlling Wallets – Battle of the Cloud Part 3

The networks are now in the midst of defining new rules to ensure they can “influence” wallets. Banks have legitimate concerns surrounding ability support consumers and adjust their risk models. But the real business drivers here control and customer data.

#1 CUSTOMER DATA

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Business Implications of Payment Tokens

2013. US mobile payments will have a new “network”, a system to use tokens which are neither V or MA card numbers. Thus Banks need not route these transactions through either V or MA, but will be able to leverage same acceptance infrastructure. Virtual card numbers will be bank numbers that banks resolve. JPM’s is first to align w/ plastic, leveraging common authorization authentication and other services

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