Over the last few weeks the global role of payment systems has become very clear.
Cash is essential, it is and will always be the backstop
The Fed was forced to fly a planeload of cash to Puerto Rico to help avert disaster, when Hurricane Maria knocked out power on the island. E-payments cannot exist without power. Long live cash. Fully cashless society? NEVER.
Instant payments are also essential
The whole e-commerce business model depends on the merchant knowing for certain that the funds have been received before they ship the goods. The Faster Payments type payment systems are the most cost-effective version because they are both efficient and cheap, the advalorum charging systems for credit cards/deferred is far more costly.
However, in an interview with European Payments Council “Instant payments: what SEPA can learn from the UK Faster Payments experience”, Craig Tillotson, CEO Faster Payments Scheme Ltd was asked what advice he would give to PSPs considering providing SCT Inst, he said, “You need to think about all the implications for the your systems, services and customer propositions. Real-time payments beget real-time banking – are you ready to offer real-time banking?” Similarly, it follows that corporates need to ask this question of themselves too: How will instant payments impact our business model.
Moble payment systems in China = 50 times those in USA
- mobile payment market was valued at US$5.5 trillion in 2016, nearly 50 times that of the United States through using Alipay and WeChat
- Alipay and WeChat are multifunctional systems: apart from making payments, users can also hail a cab, buy movie tickets, order take aways or invest in wealth management funds through the same platform
Adyen launches MarketPay
The new payments solution from Adyen allows online marketplaces to use all payment systems. GoFundMe, a personal fundraising platform, uses MarketPay to provide payments services to over 40 million donors and campaign organizers across Europe and the US. The fundraising platform uses MarketPay to enable users to donate to both local and global merchants with a variety of currencies.
MarketPay offers a solution that enables users to operate both domestically and internationally, as well as providing managed compliance by ensuring marketplaces stay out of the money flow in markets where regulators require this, especially PSD2 compliance.
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