Ignore Millennials at Your Own Risk


At a recent conference primarily for credit unions and small banks, I participated in an interesting discussion about the future role of banks and legacy payments for person-to-person (P2P) payments. Few of the attendants offered a P2P solution as part of their online or mobile banking platform and those that did claimed the product was seldom used, if at all. There was consensus that a majority of their customers just aren’t interested in this product.
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mPOS is the key to mobile payments adoption


The day when people leave their wallets at home and use their phones or tablets for all their financial transactions is on the horizon. What the founders of many FinTech companies are pondering, is just when people will reach this horizon and what will get them there. The answer to the latter part of the question, in my opinion, is mobile point of sale (mPOS) Technology.
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Chip and PIN or Chip and Signature?


OK, there’s lots going on here. Read slowly and wrap your brain around this. So which offers more security? Chip-and-PIN or chip-and-signature for your card payments? Chip-and-PIN wins. This is due to two authentication forms: the card and the PIN, which is stored in your head (or should be, anyways, rather than on some small piece of paper crinkled inside your purse).
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UX Lessons for Card Issuers from the New Starbucks Mobile App


When I moved to Seattle, Starbucks had just four locations. So I’ve had a ring-side seat in their climb to worldwide ubiquity. Though not a huge fan of their coffee, I greatly admire their business model, technology, and payments innovations.

I have been paying with the Starbucks mobile app for the past few months (note 1) as have 14% of its customers. It’s great as long as there is a queue. That gives you plenty of time to go through the 9-step mobile payments process (10 steps with tipping):
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Real-time Payments: Different questions, funnily enough, get different answers


Bob recently posted some views on the same day ACH – as always, great points, well made. Somehow, in Twittersphere, some of the comments got attributed to me, and from that some of those have got re-interpreted as me being anti real-time payments. As my daughters would say, whatever! That’s not the point of this blog.

What really struck me was the fact that some saw Bob and I as having different opinions. I would say that I don’t believe we do (at least not in the majority of the issues), but that we were addressing different questions, and, unsurprisingly, end up with different answers. To crudely paraphrase Bob’s post, he quite rightly points out that the business case, based on today’s business, doesn’t stack up. Secondly, he points out that consumers don’t really want real-time payments – how many of us wake up with the urge to make a payment?!
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Digital wallets will process all the money on earth by 2025


Another presentation that surprised me in Oslo came from Tor Jacobsen, CEO of TSM Nordic.

It surprised me as I had no idea about TSM, a mobile wallet provider owned by Telenor and DNB – Norway’s biggest mobile network operator (MNO) and biggest bank – and will launch in the Norwegian market later this year under the brand name ValYou.
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How Banks Should Respond to the New Players in Payments


New challengers are proving that banks don’t have all the answers to solving problems in payments, so what should (or can) banks do about them?

New entrants can’t kick banks out of the payments system, but they could create a disconnect between banks and their customers if banks don’t catch on to the wave of digital disruption transforming payments, Reekita Grewal, Silicon Valley Bank’s head of payments strategy solutions, said at a session on new payments entrants at BAI Payments Connect 2014 today.
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