Where Does Apple Watch Go From Here? Square Order, Balanced Both Shutdown

Episode 55

As one product is born another passes away… What a huge week for Apple as they debut the Watch with both promise and criticism as we have Brian give us amazing insights as to how it will all unfold.
Two major payment companies shutdown, Square’s mobile ordering product, ‘Order’ closes up shop after it fails to see significant growth and BalancedPayments closes its’ doors after conceding to its direct opposition, Stripe.

Our speakers in this week’s episode:

Resources:

Also available on iTunes.

 

Fast, Faster, Fastest Payments.

Faster Payments

In today’s era, there is immense business and consumer pressure on banks and payment processors to expedite payments. Over the past couple of years, we are seeing many geographies transitioning from 2-3 days payment cycles to 1 day. By today’s standards, even this is not enough.

Customers now want fast payments (definitions vary, but lets call it same day settlement). Faster payments would be the equivalent of payments settled within the span of a few hours (worse case scenario) to less than 30 minutes.

The fastest payments concepts banks on the end-to-end transaction being settled instantly (sub 15 seconds).

The UK already has FasterPayments with limits of up to GBP 100,000, payments made through UK’s FasterPayments are settled literally with seconds (sub 15 seconds) for all participating member banks.

In India, the National Payments Corporation of India runs the Immediate Payment Service (IMPS). Payments processed under IMPS are near real-time. In Pakistan, the real-time payments switch is via 1Link for consumer bank-to-bank payments that enable near real-time payments also.

Singapore has eGiro & NETS which is being replaced by G3, Germany has GiroPay and Sofortüberweisung.

G3 Immediate Payments (Singapore)

G3 Immediate Payments (Singapore)

Majority of the countries in the world have a real-time switch that connects banks (typically through the ATM Network) and are using the same mechanism to extend real-time payments to consumers.

Transforming National Payments

McKinsey & Company: McKinsey on Payments: Transforming National Payments Systems (No 20. September 2014).

The US significantly lags behind the rest of the world as far as real-time payments are concerned and keeping in view the size of the US payments market. NACHA, the US organization that sets the rules and oversees the ACH (Automated Clearing House) is divided on real-time payments. The US processed in excess of US$ 39+ Trillion in ACH transaction 2014 (Source), yet it still does not have a real-time payment system. Many banks are proposing a gradual shift to same-day ACH rather than an outright shift to instant payments. There is a lot to lose as far as float-money is concerned – not to mention many companies and institutions working around the NACHA framework would disappear overnight – should the US implement real-time payments.

There is no doubt, the US is the big fish. From companies like IBM, Ripple Labs, Vocalink, Fiserv, et. al. are all vying to be the operator of choice. There isn’t a vendor that is not trying to cajole the influencers towards their solution. Many are skeptical, that because of the political influence of banks, processors and not to mention, the income companies are making from the current ACH, a sudden move would jolt the entire ecosystem. A few payment pundits have openly cited “Real-time payments in America? Not in my lifetime!

In our upcoming shows we will be discussing the impact of real-time payments worldwide and especially what it means for the US.


 

About the Author: Faisal Khan is a banking / payments consultant and digital money evangelist. He is the co-host of Around the Coin, a weekly podcast on banking, money and payments. He is also a frequent contributor to popular Q&A site Quora. His official website is at www.faisalkhan.com

 

References & Reading

Vocalink FasterPayments Infographic

 

 

FasterPayments UK 6 Years Inforgraphic

Mobile Payments Today, Top 10s

Mobile Payments Today Top 10s

Top 10 Most Popular on Mobile Payments Today

Got one of the email newsletter from Mobile Payments Today. This is definitely worth sharing:

Top 10 White Papers

  1. Mobile Payments 101: Retail
  2. Mobile Payment 2015 [infographic]
  3. The HCE – Tokenisation Testing 101
  4. LIVE WEBINAR: Optimizing customer signup flows in your mobile and web channels
  5. cGate – Direct Mobile Billing Platform
  6. Mobile Payments: Three Steps to NFC Testing Success
  7. Digital Wallet Services – Myths and Reality
  8. Split Secret – Eliminating the Risks and Costs of Card-on-File
  9. Infographic: BLE vs. NFC
  10. The iBeacon/BLE vs NFC Debate: Now the Truth

Top 10 Articles

  1. The bitcoin-ISIS connection
  2. Is there a battle looming in the UK between Apple Pay and Zapp?
  3. Mobile payments 5 for 5: Focus on digital wallets
  4. Mexican banks adopt mPOS payments technology
  5. Samsung acquires LoopPay to help drive mobile wallet plans
  6. Mobile POS providers focused on flexibility and simplicity
  7. Payments in 10 years: Very different
  8. Google snags Softcard’s technology
  9. Mobile payments and customer care: The trust issue
  10. Mozido enters China by way of PayEase acquisition

Top 10 News

  1. Mobile Payments Today publishes wallet comparison guide
  2. Visa to eliminate 16-digit account number for remote purchases
  3. Study: Use of mobile by young customers will drive change in retail banking
  4. PCI Security Standards Council: Beware of ‘Ghost’
  5. Jumio adds biometric tech to mobile consumer verification product
  6. More retailers to accept MasterPass
  7. Report: Mobile commerce fraud increased in 2014
  8. Apple Pay, bitcoin take to the skies
  9. U.S. Treasury chooses PayPal, Dwolla for online payments
  10. Bytemark snags another mobile ticketing contract

Top 10 Topic Centers

  1. Contactless / NFC
  2. Mobile/Digital Wallet
  3. Webinars
  4. Bill Payment
  5. Direct Carrier Billing
  6. Money Transfer / P2P
  7. Trends / Statistics
  8. Mobile Payments
  9. In-App Payments
  10. Mobile Banking

Top 10 Showcases

  1. txtNation
  2. Infobip
  3. BilltoMobile
  4. Cellum Group
  5. Clear2Pay
  6. Mahindra Comviva
  7. CardMobili
  8. SLA Mobile
  9. MagTek
  10. Jumio

Top 10 Products

  1. Premium SMS Billing (P-SMS) and Short-Codes
  2. Infobip Mobile Payments – Centili
  3. Direct Operator Billing (Direct-to-Bill)
  4. IVR Billing
  5. Payforit
  6. White labeled mobile payment platform
  7. Infobip USSD solution
  8. MokiTouch – iPad and Android Kiosk App
  9. WAP Billing and PayForIt
  10. JunglePay – Mobile Payment and Online Billing Solution

Top 10 Blogs

  1. 10 things you (and maybe Google!) didn’t know Google Wallet can do
  2. Future of money: Cashless, cardless, paperless
  3. A holistic mobile payments strategy goes beyond the point of sale
  4. Cracking the Apple Pay code
  5. Why merchants should adopt a mobile wallet strategy
  6. How Apple killed the digital wallet
  7. Omnichannel banking: A consumer-first, not bank-first, experience
  8. Five trends in mobile payments worldwide in 2014
  9. BLE vs. NFC: The future of mobile consumer engagement now [infographic]
  10. A conversation on all things mobile: Banking, payments, and Costanza

Top 10 Videos

  1. FIS executive discusses the convergence of mobile and ATMs
  2. Future trends in mobile/ATM innovation
  3. Citi’s Greg Baxter describes the bank’s cashless strategy
  4. CONNECT 2014 Mobile Innovation Summit (preview)
  5. Agenda: ATM and Mobile Innovation Summit 2014
  6. CTIA 2012: Infobip looks for a silver lining in the mobile cloud
  7. NCR at NRF: presenting the mobile shopper
  8. NCR Silver: making mobile POS an option for larger merchants
  9. Isis makes magic at SXSW
  10. Bump Pay makes P2P payments a tap

Secret Apple watch data Released & How Marketplaces pay their workers

Episode 53

This week Brian, with his inside connections at Apple, described what it was like to wear the Apple Watch for a full day and naturally we all made predictions about future impact of the watch and other wearables. We then touched on Google acquiring Softcard, and lastly we talked about how Marketplace companies (Uber, HomeHero, Instacart etc) handle payments to workers and some of the recent legal changes to 1099 workers that have had a huge effect.

Our speakers in this week’s episode:

Resources:

Also available on iTunes.