Because the benefits of RFID are so enticing, Celent expects the technology to play an increasingly prominent role in payments. Considering that three of the top target retail outlets for RFID payments are quick service restaurants (QSRs), movie theaters, and movie and video game rental stores, RFID represents a significant revenue opportunity. In aggregate, 2002 US sales in all three were over US$160 billion. In 2007, we expect RFID payments to capture at least 8 percent of the revenue obtained by these three outlets.
A provision now built into most card agreements allows the companies to reset anyone's interest rate based on the size and status of other debts. And improvements in information technology and a change in federal law have spurred card companies in the last couple of years to check their customers' data regularly, not only when they review applications or notice missed payments.
The two global organizations have signed a Memorandum of Understanding (MOU) that outlines the scope of cooperation between the two companies. This agreement includes exploring the business requirements for secure payments utilizing contactless chip technology. Specifically, Philips and Visa are looking to identify joint business partners, such as hardware manufacturers and content providers, and to investigate developing business and technical models that meet their unique needs.
Still, micropayments may become widespread. There are needs that micropayments are uniquely suited to fill. However, given all the obstacles that micropayments face, they are unlikely to succeed if offered as a service that requires special hardware or software. They are most likely to succeed if they piggyback on top of something that is already widely used, such as cell phones, or (in some places) mass-transit smart cards. When offered as an additional feature for something that is already carried by most of the population, micropayments might be able to overcome the usual chicken and egg problem, and find their (very likely small) niche in the economy.So, when and where might a breakthrough in adoption of micropayments on a mass scale occur? A Google News search on micropayments reveals a lot going on. Update: Paul Guthrie comments via email:
I think one might argue that Micropayments have broken through if you include Premium rate SMS transactions (mostly in Europe) or NTT DoCoMo's model in Japan. These approaches might more accurately be called micro-billing. As for something successful on the web, still very little is going on. So, the question in my mind, is with a convergence going on between web and mobile technologies, when will one of these systems start getting mainstream make the transition, and is a transition even possible, considering the mindset of web users is not to pay for anything, while the mindset of mobile users is to pay for every little thing.
During the first quarter of 2003, NACHA estimates that more than $48 billion in online bill payments were made in which the Automated Clearing House (ACH) Network was the payment system used. That figure is half of the amount of $96 billion for all of 2002. At the current growth rate, the amount would exceed $200 billion for all of 2003. In contrast, a recent survey estimated online sales figures of $76 billion for 2002 and $96 billion for 2003.Meanwhile, CRMdaily reports on Forrester research on business to business usage of electronic invoice presentment and payment.
Thirty-nine percent of respondents that experienced a security breach within the past year stated that only 10 percent of the attacks originated internally - contradicting common belief that the vast majority of cyber crime originates from within the organization rather than an external attack.
Using OptiCash, a solution that applies mathematical algorithms to historical, event and cost information, UBS will be able to optimize the level of cash held at its branches and ATMs (1,300 outlets in total) in Switzerland. This approach leads to obvious benefits in terms of reduction in interest and cash-handling costs.
Says Uttam Nayak, deputy country manager (South Asia), Visa International, "Thirty million people are eligible for credit cards while 130 million bank account holders are eligible for debit cards. That is the potential for growth." Banks expect card usage to grow 100 per cent in the next year. Currently, roughly 55 per cent of credit cards are active. The usage growth will depend on how many outlets accept cards.
At issue is whether Congress should expand the power of obscure entities known as industrial loan companies. These state-chartered, limited-purpose banks -- which operate in Utah, California, Colorado, Nevada and Minnesota -- generally specialize in one area, such as offering credit cards. The owners of these companies are not regulated by the Federal Reserve and may include automakers, discount department stores and other firms that are largely unrelated to financial services.
As Philostratus wrote: "the wise perceive things about to happen."Are micropayments, finally, about to happen? I've started a new page to log my new learnings about micropayments.
"The successful implementation of the Visa Direct environment in London, is proof that we are indeed able to implement the Clear2Pay vision in existing and complex environments. Financial service providers can literally make quite some money by improving efficiency in their payment systems and integration with their customers. This is an area where we at this very time, when inter-bank fees are under heavy scrutiny, need to focus on. The bilateral payment systems we know today automate existing processes and cannot deliver that promise. I strongly believe in what I call 'the New Wave': internet based payment systems which handle transactions at a multi-lateral level. The bank retains and strengthens its role as the primary payments processor and customer relationship owner, whilst at the same time enhancing efficiency, improving ease of use and cutting costs." said Michel Akkermans, CEO and Chairman of Board of Directors of Clear2Pay.
Under the Visa Loyalty Program Patent Agreement, Catuity, Visa and Welcome will cross license existing and future patents for Visa smart loyalty programs. This cross license will be worldwide and royalty-free until the last patent expires. The cross license will extend to all Visa affiliates, members and merchants. Participants will develop and promote interoperable loyalty solutions by integrating the Visa interoperability toolkits within their platforms. These toolkits, demonstrated by Visa, Welcome and Catuity during Cartes 2002, allow cards with one technology to be used in terminals connected to a different loyalty platform, and for data from different loyalty processing centers to be aggregated to enable customer service activities.
The survey of 11,263 consumers, the largest in the electronic payments industry, also found that consumers who make both PIN-secured and signature debit purchases are the most active among all debit cardholders in terms of number of transactions. Respondents who used only signature debit used their card an average of 13 times per month, while those who used only PIN-secured debit used their card almost 9 times (8.9) per month. But usage frequency jumped to almost 19 times (18.8) per month among those who made both types of transactions.
He says this recent case will reshape an industry in which the two companies used their dominance in the credit card market to exact excessive fees from merchants when customers used their debit cards. He calls them "the cartel of Visa and MasterCard." "We believe people do better when things are free," he says. "The regime we're ending is a system where there were no choices." He also expects the settlements to cut the fees that merchants usually pay each time they accept Visa- or MasterCard-branded debit cards, saving merchants and consumers as much as $100 billion over the next 10 years. "To me, that's 100 times more important than $3 billion," he says.
Assurance that personal information would be kept private, a guarantee that consumers would not receive unwanted e-mails as a result of purchases and an extra layer of security for credit card transactions were among the most important factors influencing the degree to which consumers would make purchases online. More than 1,000 consumers participated in the study, "MasterCard Internet Consumer Segmentation Research," which was conducted during fourth quarter 2002.
Shortly after he was arrested, prosecutors said Olusajo tried to conceal his identity by soaking his fingers in a jail toilet, then chewing away the softened skin. He was unsuccessful, according to prosecutors.Amazing!
Last year, online retail sales in seven out of 15 product categories accounted for 5 percent or more of the $2.07 trillion in total retail spending. And this year, that figure is expected to increase to 9 categories out of 15, Silverman said. It is estimated that retail sales this year could reach $2.13 trillion. In the computer hardware and software category, 34 percent is expected to come from online transactions. Sales of all online tickets, including travel, events and movies, are expected to capture 20 percent of all ticket sales, while 15 percent of all book sales are anticipated to be online, according to the study.
The attack requires physical access to the computer, so the technique poses little threat to virtual machines running on PCs and servers. But it could be used to steal data from smart cards, said Sudhakar Govindavajhala, a computer-science graduate student at Princeton who demonstrated the procedure Tuesday. "There are smart cards that use Java that you could shine a light on, flip a bit and get access to the card's data," he said. The technique relies on the ability of energy to "flip bits" in memory. While cosmic rays can very occasionally cause a random bit in memory to change value, from 0 to 1 or from 1 to 0, Govindavajhala decided not to wait. He used a lamp to heat up the chips inside a computer and cause one or more bits of memory to change. By doing so, the researcher broke the security model that virtual machine's rely on--that the computer faithfully executes its instruction set.
In the Irving, Texas, trial, which is scheduled to last six to eight months, consumers can wave their SmartCover Nokia phones in front of the reader instead using a card. Both PayPass cards and SmartCover phones come with hidden computer chips and radio frequency circuits, which transmit payment details through the air rather than via a magnetic stripe.
Always high ranked since the Scorecard's 1998 debut, Wells Fargo takes the top spot during a review period in which it launched an online deposit statement archive and more extensive bill presentment services, among other enhancements. On the surface, the pioneering Web bank appears to have left elements of its eight-year-old online offering untouched. But in actuality, the breadth of products supported with education, applications, account look-up and money movement is industry-leading. Meanwhile, additional attention is paid to how customers use the offering; the bank exquisitely pre-fills applications and delivers extensive help, online banking demos and reliability guarantees. Wells Fargo, moreover, has jumped to the front car of the online document delivery bandwagon, joining other large retail banks -- Bank of America, Wachovia, Wells Fargo and Bank One -- which all offer either online check images or online statement copies to most retail deposit customers. Wells Fargo's offering, however, goes one step further: it makes available seven years worth of online statements.