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« July 21, 2002 - July 27, 2002 | Main | August 4, 2002 - August 10, 2002 »

August 01, 2002

WSJ: iPIN rigs cars with electronic payment system

Ross Snel reports on iPIN's plans for equipping cars with transponders for use in payments.
Here's how iPIN's system might work: You pull up to a drive-through window at a fast-food restaurant and order a meal. Instead of grabbing your wallet, though, you sit back while the restaurant's electronic scanner bounces a radio-frequency signal to a chip embedded deep inside your car. The chip identifies you and your payment account. After the cashier receives an electronic message verifying that you have enough money in your account for your burger, fries and shake, he hands over your food and you drive away.
If this system obtains a confirmation from the consumer agreeing to the payment (presumably from a dashboard display), then it might be acceptable to consumers. Lacking that, how many consumers will feel comfortable with a merchant just arbitrarily sucking money out of their account?

July 31, 2002

eMarketer: Cash, credit or mobile?

A brief update on mobile payments in Korea.

TowerGroup: Electronic Invoice Presentation/Payment and game theory

Lee Kidder from TowerGroup writes about the classic "chicken and egg" problem of many new services.
In this non-zero-sum game, all or most parties stand to gain as a result of participating, making the net result positive. EIPP is therefore a win-win proposition for all, and lockbox is dead. The end. The only problem with this scenario is that isn't happening now and won't happen in five years despite the interest and activity in EIPP and in business-to-business (B2B) e-commerce in general.

Concord EFS trading down almost 20%

Following its earnings announcement and conference call yesterday, Concord EFS is trading down almost 20% this morning. Analysts were pleased with revenue growth at the company but questioned the cost structure of the business and the pressure it's putting on margins. Concord EFS' largest competitor First Data Corp. is also trading down over 10% this morning.

Sonera Smartrust and Mosaic Software focus on mobile payments

Mosaic Software‚s Postilion and SmartTrust‚s Delivery Platform (DP) products have been integrated to make it possible for mobile operators and financial services providers to accept authenticated payments from a mobile handset. The solution employs SMS or GPRS messaging to create a secure payment channel from the handset‚s SIM card through to its user‚s bank account.

Scotiabank launches cash-back feature on Classic Visa cards

Scotiabank has announced a new cash-back feature on its Classic Visa cards.

USA Today: Paying by fingerprint

USA Today reports on paying with your fingerprint.

July 30, 2002

FDIC: Role of Risk Management: Basel and Beyond

The FDIC is hosting a seminar tomorrow in New York (which will also be webcast) on this subject.

Cooper Newsletter: Learning from the mistakes of Internet banks

Chris Weeldreyer writes how Internet banks haven't changed the world -- at least not substantially.
Customers don't care about the latest technology if it doesn't satisfy their basic goals. The Internet-only banks provide a good cautionary tale here. Among many other customer service gaffes, many of these banks have failed largely because they didn't provide a good way to accept deposits or dispense cash. It seems obvious in hindsight, but designing a bank that didn't satisfy the basic need for depositing and withdrawing money was doomed to failure. How can you avoid making expensive mistakes like these?

July 29, 2002

Korea Times: Hyundai Dept. Store to Launch Mobile Payment Service

Based upon the carriers listed as offering the service (KTF and LG Telecom), this appears to be a Brew application.
Yang said that customers will need a Kookmin Card service and to download the mobile payment settlement program from Kookmin Card's website onto their handsets in order to use the service. Only KTF (016 and 018) and LG Telecom (019) mobile service users will be able to utilize the service. ... Customers will be able to settle payments by pointing their phones at the point-of-sale (POS) device at the sales counter and pressing their password into the phone's keypad, just as they do when they switch TV channels with remote controller. Then the money will be charged to their credit card.
I'm interested in learning more about this -- if you have more information on this offering, please email me.

Visa updates Proximity Payments specification

Visa International has posted version 2.0 of its Proximity Payments Messaging Specification.

Wireless Report: New generation payments call for proximity

Sue Gordon-Lathrop, VP Emerging Consumer Enviroments at Visa International, pens this article on the need for proximity payment solutions.
With all proximity payments technologies, Visa is providing support to its member banks based on the demands and requirements of their customers. Even as a mature technology proximity payments will not replace the trusted plastic payment card; rather it will add value and utility to the cardholder, and improve efficiencies for merchants.
More on proximity payments from Visa's corporate web site.

American Express: Introduces new "up to 5%" rebate credit card

American Express this morning introduced the new Cash Rebate Card.
Cash Rebate of up to 5% - The cash reward is based on customer spend and payment behaviors. The annual cash reward for purchases is up to 3%. There is an additional rebate of up to 2% for purchases in months in which the account carries a balance. An account is eligible for a rebate applied to a maximum of $50,000 of eligible annual spending.
American Express is uniquely positioned to be able to offer the highest cash rebates to consumers -- should this become a new industry battleground -- because, all other things being equal, Amex's higher merchant discount provides more revenue than that achieved by the other card brands. Discover, long the leader in the rebate card category, is likely in the worst position (from a P&L perspective) as its merchant discount is typically the lowest of the card brands.

July 28, 2002

Omaha World-Herald: Eula Adams

The Omaha World-Herald has an interview with FDC's Eula Adams.

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