1. Move to mobile based payment services is growing inexorably world-wide, but there are claims and counter claims about wallets:
- Google have just announced that Google Pay, their Android based mobile wallet, has passed 100 million installs from the Play Store
- Apple Insider claimed on February 22 that “Apple Pay used by estimated 127M users globally, but analyst claims only 16 percent of iPhones used for payments”
- Knowledge Wharton state that, “Cashless settlements already are the norm for many Chinese. Now, Ant Financial Services Group’s Alipay and Tencent Holdings’ WeChat Pay are looking to expand to overseas markets, initially by offering such options to Chinese overseas residents and tourists.” Alipay uses QR, or Quick Response, codes to handle payments.
2. Making payment inside other services is growing:
- Instagram has added an in-app payments feature to its app for some users in certain regions. It allows users to register a debit or credit card as part of a profile, set up a security PIN, then start buying things without ever leaving Instagram.
- FaceBook’s WhatsApp is planning to add payments to the basic WhatsApp service
3. Card companies are being hit with complaints about their charging structures and new services to avoid their charging structure completely are coming to market:
- An independent payments consultancy, CMSPI, has initiated a complaint with the European Commission over changes Visa is making to its fees, claiming the card scheme’s actions could cost small businesses in Europe more than $2 billion a year. estructured the fees it levies for processing credit and debit card transactions, adding a new per-item charge. This, says CMSPI, will hit merchants, such as fast food outlets and convenience stores, which have low average transaction values. In fact, the firm claims that some will see fees increase by over 100%. |They have recently increased the percentage element of its fees, increasing costs for merchants with a high average transaction value.
- Deutsche Bank new payment service for airlines in Europe. “We are developing an industry-wide payment solution that is an alternative to credit cards,” said Javier Orejas of the International Air Transport Association. It will save, IATA prediuct, up to $8bn in payment processing costs. This is only possible under the new PSD2 regulations.
4. P2P payments:
- Zelle, the US based Person-2-Person payment service, processed $25billion P2P payments in first quarter of 2018. Zelle makes payments between bank accounts, in a few minutes, using only an e-mail address or a US mobile phone number. Currently, more than 100 financial institutions have signed contracts to participate in the Zelle Network. But there have been allegations of fraud and difficulties with extracting funds from the network.
CTMfile take: These examples raise questions for the corporate treasury department: Are we making enough use of mobile payments? Could we incorporate a payment facility inside our basic services? Where can we get out of expensive card payments?
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