Google Introduces the Google Wallet Card

Google has announced the Google Wallet Card - a new physical card that allows Google Waller users in the US to spend from their Google Wallet accounts at MasterCard accepting merchants without having to transfer their balances into their bank accounts. The card is free but must be ordered from Google by the user. An FAQ about the new Google Wallet Card says that "the Google Wallet Card is accepted at millions of MasterCard locations. Choose either credit or debit at checkout, and if you're prompted for a PIN, enter your Google Wallet PIN." Google also noted that "You cannot...

Headline News from PaymentsNews.com - November 21, 2013

On the web: Wells Fargo's John Stumpf, the 2013 Banker of the Year - American Banker (Maria Aspan) - "Stumpf is quick to share credit: "The star of the team here is the team." And much of the team's success, he says, is rooted in what he calls the "community bank DNA" that permeates the company." Google Wallet Creators Reflect on Its Failures, Lessons - Fast Company - "The service was too dependent on a string of outside players, including the merchants, the phone makers, the credit-card companies, and most dangerously, the carriers." Physical Google Wallet Card launches; drain your...

Manilow Fund Uses Tempo's Affinity Debit Platform

Tempo has announced that its affinity debit platform is being utilized by the Manilow Fund for Health and Hope to provide donors with debit cards that support the Barry Manilow-created nonprofit organization’s campaign to save public school music programs “one swipe at a time.” Each time a Manilow Fund for Health and Hope debit card is used to make a purchase, the organization will receive a portion of standard transaction fees, utilizing cardholders’ purchasing power instead of out-of-pocket money to increase the Fund’s revenue. Proceeds will be used by the Manilow Fund for Health and Hope’s Manilow Music Project to...

A Look at TSYS' New Hybrid Card

In an article titled "Re-coupled Debit? The TSYS Hybrid Card" over on PaymentsViews.com, Glenbrook's Bryan Derman takes a look at the recently announced TSYS Hybrid card. Bryan writes: "TSYS’s product could provide a compelling version of a promising concept that has largely been a disappointment in the marketplace."

Tempo Powers New Dogster & Catster Affinity Debit Cards

Dogster, Inc., creator of the web destinations Dogster and Catster, has announced it is now offering affinity debit cards that members can personalize with a photo of their pet that are enabled by Tempo’s Web-based debit card platform. Dogster and Catster are the fastest growing pet owner destination sites on the Internet, providing information and entertainment to dog lovers and cat lovers. Dogster and Catster debit cardholders will receive cash-back rewards for every signature-based purchase, with rewards automatically deposited into cardholder accounts on a monthly basis. Tempo technology makes it easy for organizations to offer affinity debit cards and provides...

Tempo Introduces New Affinity and Co-Branded Debit Cards

Tempo has introduced a new Web-based platform that it says "enables organizations to quickly and easily offer affinity and co-branded debit cards to customers, contributors and members. These organizations can now provide open loop debit cards and offer rewards ranging from cash-back to charitable contributions. The debit cards enabled by Tempo are issued by First Bank & Trust, of Brookings, SD, part of Fishback Financial Corporation. Tempo’s platform enables these cards to be linked to cardholders’ pre-existing checking accounts." Tempo-enabled debit cards are affinity partner-branded, generate valuable cardholder rewards, and can be used for online and offline purchases and ATM...

New on Payments Views: Why Debit Cards Aren't a Product...

In a new PaymentsViews.com article titled "Why Debit Cards Aren't a Product...and Why 'Decoupled Debit' Could Change All That", Glenbrook's Carol Coye Benson asks whether debit cards are products - or features?

National Payment Card Association Launches GasCapRewards

National Payment Card Association, an early player in ACH decoupled debit cards with payment settlement system that offer merchants lower transaction fees than credit or debit cards, has announced it has launched GasCapRewards, a nationally branded, lower-cost, turnkey payment system.

White Papers Available in First Data's Thought Leadership Library

First Data Corp. has a growing collection of white papers in its Thought Leadership Library covering a wide range of payments-related topics. The latest papers include: Mobile Account Management: The Mobile Commerce Enabler - by Barry McCarthy, President, Mobile Commerce Solutions Innovations in Payments and Decoupled Debit Reshape the Power of Merchant Loyalty Programs - by Timothy Horton, Vice President of Product Management Financial Institutions Must Rethink Their Remote Deposit Capture Support Models - by Kathleen Houseman, Vice President, Remote Deposit Capture Solutions, and Mark Nevle, Director, Product Development

An Interview with Steve Ellis, NACHA Chairman

Glenbrook’s Carol Coye Benson interviewed Steve Ellis, NACHA Chairman, recently about the use of ACH to access consumer checking accounts and NACHA's Secure Vault Payments initiative. Read on for her full report. Introduction I interviewed Steve Ellis last week about some future-of-ACH issues that have been nagging at me recently. Steve, an EVP at Wells Fargo, is nearing the end of his second two-year term as chairman of NACHA, the bank-owned and controlled association which sets the rules for the use of the ACH system in the United States. During this period, there has been a dramatic growth in the...

Capital One's Decoupled Debit MasterCard Spotted in the Wild

Morriss Partee, CEO of EverythingCU.com, blogs on the Payment Industry Insider blog about an email he recently received from Capital One offering him "big rewards for his debit purchases - without changing banks." Partee writes: "No longer a regional effort tied to rewards at a supermarket chain, they now (presumably) have gone national, and have tied it to their own reward program. On top of that, they are charging the consumer $19.95 per year for the service." You can read more about Capital One's Debit MasterCard at the Capital One web site. A comprehensive FAQ on the product is available....

Disruption in the Payments World

Celent has published a new report titled 'Disruption in the Payments World' saying that 'the current euphoric era for many issuers will be disrupted and quite possibly eliminated over the next three years.' Why? Celent's reasons include a forecast that interchange rates will begin to decline, that a large payments company will launch an alternative network to MasterCard and Visa, and that credit card issuers will need to diversify their payments mix by adding decoupled debit payment options. Celent expects some major shake-ups to occur in the payments industry in the near future. A new report, Disruption in the Payments...

Decoupled Debit Card Tests Shutdown by Capital One

Will Wade reports for the American Banker (subscription required) that Capital One is shutting down two merchant pilots of its decoupled debit card product that was announced last May.

Emerging Payments - The Changing Landscape

Marianne Crowe, Vice President, Emerging Payments Research Group, at the Federal Reserve Bank of Boston, gave a presentation last week titled "Emerging Payments - The Changing Landscape" to the Maine Association of Community Banks and to the New Hampshire Community Bankers Association. Crowe's presentation discusses the growth in debit card payments, the emergence (and potential threats to banks) of decoupled debit cards, prepaid cards for the unbanked, and the use of the Internet for bill payment, ecommerce purchases, and person-to-person or account-to-account money transfers. She also discusses contactless payments and mobile banking.

A Look at Restricted Authorization Networks

The Mercator Advisory Group has published a new report titled "Restricted Authorization Networks: Winner Takes All" by Tim Sloane, Director of Mercator's Prepaid Advisory Service. The report explores "how merchants and others can bring Prepaid Cards and Debit Cards to market, funded by Decoupled Debit and other mechanisms, to help consumers better manage their expenses and deliver meaningful savings - and therefore addressing this growing consumer demand. But most importantly, this report identifies how Restricted Authorization Networks can control how these cards are used in ways that were never before possible." This new level of control will be used to...

Who Wants a Decoupled Debit Card?

Aite Group has published a new report titled "Who Wants a Decoupled Debit Card?" that it says "reveals that there is a sizeable potential market for decoupled debit cards in the United States, with about a third of cardholders expressing interest." Based on an online survey of 500 U.S. consumers, completed in January of 2008 and aimed at investigating trends in payments, rewards and loyalty, this report fleshes out key characteristics of the target market and provides recommendations to product managers at card issuers. Among its key findings, the report notes that consumers interested in decoupled debit cards are "reward...

ACH @ POS

Glenbrook's Carol Coye Benson recently spoke with Elliott McEntee, President and CEO of NACHA about two current payment industry issues - NACHA's reaction to "de-coupled debits" and the progress of the Secure Vault Payments program. She's filed this report on the discussion.

A Look at Decoupled Debit

Mercator Advisory Group has announced a new report titled "Decoupled Debit - Let's Take a Closer Look" that the company says "evaluates the recent emergence of this new and possibly disruptive technology in the financial services industry, decoupled debit. Decoupled debit is an alternative based ACH debit card solution that utilizes two existing systems that are well defined in the financial services industry but were not designed to work in combination with each other, the ACH network and the branded payment networks such as MasterCard, Visa, NYCE, etc." Intermediate service providers use the "man in the middle" approach to switch...

Decoupled Debit Presents Threats, Opportunities to Banks

Maria Bruno-Britz writes for Bank Systems & Technology about decoupled debit - and whether it's a threat or an opportunity for banks.

HSBC, Pathmark Plan Loyalty Rewards Debit Payment Card Program

HSBC Finance Corporation’s card and retail services business and Pathmark Stores have announced "an agreement to offer a multi-purpose rewards and payment card for supermarket customers. The new Pathmark Advantage Payment Card enhances the current Pathmark Advantage Club card by providing an easy and superior one-swipe payment process that also generates loyalty rewards." The card is linked to the consumer's checking account and functions as a PIN-debit card for purchases. The cards will also be accepted "at more than 200,000 merchant locations in the U.S. that participate in the Tempo Payment Network." A pilot launch is planned for later this...

Bankrate.com's Fall 2007 Debit Card Study

Bankrate.com has published its Fall 2007 Debit Card Study - exploring debit card reward programs, fees for PIN debit usage, Capital One's decoupled debit, etc.

An Update on Tempo Payments

Tempo announced a new decoupled debit strategy called Tempo Debit about two months ago. We recently asked Tempo Payments CEO Mike Grossman for an update on his company's activities since that announcement. Our Q&A exchange with him follows. Q. How would you define 'success' for Tempo in the coming year? A. We have three key objectives: 1) forging relationships with several large new issuers interested in decoupled debit; 2) enabling our initial decoupled debit issuer - HSBC - to successfully launch programs with major merchants; and 3) expanding our technology platform to include support for PIN credit and stored value....

Some Thoughts re: Capital One's Decoupled Debit Card

Broox Peterson shares some of his thoughts in a commentary reflecting on Capital One's recent introduction of a new "decoupled debit" card program. Capital(ism) One (on One) © Broox W. Peterson 2007 Capital One’s recent announcement that it would roll out a co-branded/affinity debit card that would accumulate awards from spending and could be settled from any demand deposit account at any institution has raised some eyebrows – and some new questions. What can or should the financial institutions holding these accounts do about this? Are there any potential legal implications? There are several possible responses by account holding institutions....

Tempo Introduces Decoupled Debit for FI's, Hosted Payment Platform

Tempo Payments made two announcements this morning. The first, a "Decoupled Debit Option for Financial Institutions" that "enables financial institutions and other issuers to rapidly deploy comprehensive ACH-based debit card programs." The second, the "availability of the Tempo Payment Platform, the first hosted solution that enables financial institutions and other issuers to rapidly deploy innovative card payment solutions." Here's the Tempo Debit announcement: Tempo Payments, Inc., today announced the availability of Tempo™ Debit, the first debit solution that enables financial institutions and other issuers to rapidly deploy comprehensive ACH-based debit card programs. Shattering long-standing barriers to increased debit card use,...

Have Retail Bankers Left the Barn Door Open?

Cornerstone Advisors' Terence Roche writes for Gonzobanker about the new raid on retail bank revenues coming from the likes of Capital One with its new "Capital One decoupled debit card" product and HSBC/Tempo's new CVS-branded debit card. Earlier this week, we noticed that Sheetz has begun working with Capital One on its new debit card program. Both of these innovative debit card products ride the ACH rails into the consumer's bank checking account - there's no need for the consumer to switch banks - rewarding the cardholder in the process with a much richer rewards program stimulating higher usage and...

Sheetz Testing Branded Capital One Decoupled Debit Cards

QSR Magazine is reporting that Sheetz has begun "testing an innovative new program that provides debit card customers with rewards similar to those available to credit customers — The Sheetz Debitz MasterCard" with Capital One. Rewards are available on purchases at both Sheetz as well as anywhere else MasterCard is accepted. This is the first merchant using Capital One's recently announced "Decoupled Debit" product that we've come across.

Capital One Tests New Decoupled Debit Card

Aleksandra Todorova writes for SmartMoney about Capital One's new "decoupled debit" card strategy. (See earlier posts on this new Capital One product on Payments News here and here.)

The Next Big Thing in Cards - Co-Branded Decoupled Debit Cards

The Aite Group has announced a new report titled "The Next Big Thing in Cards: Co-Branded Decoupled Debit Cards" that examines Capital One's recent launch of a MasterCard decoupled debit card - calling it "a major breakthrough in card issuing." Aite Group views the product as squarely taking on deposit institutions, and predicts it will have a long-lasting impact on both the card and banking industries. See also Payments News' earlier coverage of this innovative new product. The report asserts that the product's likelihood of success is very high and that the product will cause ripple effects well beyond the...

Capital One Launches Decoupled Debit Cards for Merchants

We spoke last week with Matt Sexstone, head of business development in Capital One's Merchant Client Services unit about their plans to challenge the status quo in the merchant co-brand market. Based on our discussion, Capital One "gets it" with respect to merchants seeking new payments solutions that drive incremental sales and customer loyalty - and has begun offering a unique approach that seems well suited to major retail merchants. Read on for details. Capital One's strategy begins with their long-standing expertise in credit - enabling "full spectrum" consumer credit approvals for co-brand and private label credit cards. The objective...