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Home > NFC payments will not subvert the entire payment industry but will change

 

In developed countries, the money has been digitized for decades. Now almost no Westerner to reach the salary of the entity. In each payday, employers manner through direct transfers to employees wages digitally bank account. A simple procedure can be turned over to the user's cost 401 (k) account, or quickly pay rent and other expenses, utility bills, student loans and other expenses. (Note: 401 (k) is the United States founded in 1981 a deferred taxation of retirement account plan, because the relevant provisions set out in the National Tax Section 401 (k) bar, hence the name.)
While countries such as Singapore and the Netherlands, cash has become a minority. However, we still live in a world based on cash payment. Because in the world, 85% of consumers use the notes and coins transactions. According to MasterCard Advisors research, such as India, Mexico, Italy and Taiwan such countries or regions have more than 90% of the transactions using cash. Even in the US, the cash payment also occupy a variety of payment 55%. The new payment technologies, including digital wallet, encrypted electronic money (such as Bitcoin), and mobile point-payment, including the intention to break this balance. They are accelerating the user to get rid of cash and is now very mature alternative banking and credit card system. Not only in the United States, in developing countries as well.
NFC payments will not subvert the entire payment industry but will change
Digital payment world countries accounted for the proportion of non-cash payments
From the above data reports, the technology industry task you want to change payment method seems very difficult.
First, we must recognize the payment technology industry development, we need to understand the relationship between them and the traditional payment services. Including mobile wallet Apple Pay and LoopPay a class of technologies, running on top of the existing payment networks, the payment process is performed by banks and credit card companies operate. The purpose of this type of new technology is to allow those who have the use of the payment system more convenient and more secure, so some of the potential cash into electronic payments. And the other different payment technology is the hope of a new way to replace the existing system, the existing huge challenge fundamentally the payments industry. Among them, the person-to-person payment application Venmo would fall into this category, it is handled in a year the CPC pipeline to pay $ 3 billion. In Iowa, an industry founded Dwolla rookie looking to cut fees paid by Visa generated methods.
The Boston Consulting Group (BCG) predicts that as technology promote the transformation of our shopping is expected to be paid in 2023 the industry will grow to twice its annual revenue in 2013 and more than 2 trillion US dollars. Of which a large part of the growth will come from to replace cash payments of developing countries. But BCG also predicted that worldwide digital technology to bring the traditional payment industry, "Challenges and Opportunities", will promote the existing credit card system to prove their advantages over other new competitors.
"Smartphones in the payments industry has spawned many variations." Now Matrix Partners venture capitalists, former eBay and PayPal executive home Dana Stalder (Dana Stalder) said. He is now a member of the Poynt director of the company, the company recently launched a smart credit card terminal. According to consultancy CB Insights data, venture capital investments in the technology sector to pay between January 2013 and June 2014 more than 2 billion US dollars,
However, the established players, especially banks and credit card companies are still processing the majority of non-cash payments today. But with the developments, their location but more secure. A good example is last year's high-profile launch of Apple Pay, it's not like Google Wallet and PayPal as an early technology, Apple Pay does not try to replace the user's bank card pocket. Open Apple Pay digital wallet interface, you will find it and had exactly the same bank card wallet. While another digital wallet LoopPay terminal can support more than Apple Pay, because it is simple, widely used process card compatible device simulation magnetic stripe credit cards, is equally dependent on the existing credit card system.
"Think about it, how long it takes the infrastructure was created," LoopPay CEO Will Grayling (Will Graylin) said, "to change the existing trade practices is very difficult."
Payments industry innovation to take root in developing countries are particularly vulnerable, because it makes it easy for users to skip the stage of a large number of ATM and checks directly into the field of mobile payments. For example, M-Pesa has become an important force in Kenya and Tanzania. It put the money into a mobile phone money - used to redeem airtime or purchase other items. Today, about 60 percent of adults in Kenya are using mobile phones to collect the money and pay.
What will hinder the development of payment technology boom it?
Security issues. Consulting firm Accenture recently surveyed 4000 consumers in North America found that while more and more people want to use mobile payment, but 57% of respondents were worried about the safety of such transactions. Two years ago this proportion was 45%.
The new technology will help users resolve security concerns. Apple Pay, Google Wallet will be created at each pay a one-time digital signature is sent to the system rather than sending the customer's credit card information, so as to protect the security of credit card information.
About Payment safety innovations tells us: now, if not overturn mobile payment industry, but at least it is now urgent to improve our upgrade of payment ecosystem.

In developed countries, the money has been digitized for decades. Now almost no Westerner to reach the salary of the entity. In each payday, employers manner through direct transfers to employees wages digitally bank account. A simple procedure can be turned over to the user's cost 401 (k) account, or quickly pay rent and other expenses, utility bills, student loans and other expenses. (Note: 401 (k) is the United States founded in 1981 a deferred taxation of retirement account plan, because the relevant provisions set out in the National Tax Section 401 (k) bar, hence the name.)

While countries such as Singapore and the Netherlands, cash has become a minority. However, we still live in a world based on cash payment. Because in the world, 85% of consumers use the notes and coins transactions. According to Master Card Advisors research, such as India, Mexico, Italy and Taiwan such countries or regions have more than 90% of the transactions using cash. Even in the US, the cash payment also occupy a variety of payment 55%. The new payment technologies, including digital wallet, encrypted electronic money (such as Bitcoin), and mobile point-payment, including the intention to break this balance. They are accelerating the user to get rid of cash and is now very mature alternative banking and credit card system. Not only in the United States, in developing countries as well.

NFC payments will not subvert the entire payment industry but will change

Digital payment world countries accounted for the proportion of non-cash payments

From the above data reports, the technology industry task you want to change payment method seems very difficult.

First, we must recognize the payment technology industry development, we need to understand the relationship between them and the traditional payment services. Including mobile wallet Apple Pay and LoopPay a class of technologies, running on top of the existing payment networks, the payment process is performed by banks and credit card companies operate. The purpose of this type of new technology is to allow those who have the use of the payment system more convenient and more secure, so some of the potential cash into electronic payments. And the other different payment technology is the hope of a new way to replace the existing system, the existing huge challenge fundamentally the payments industry. Among them, the person-to-person payment application Venmo would fall into this category, it is handled in a year the CPC pipeline to pay $ 3 billion. In Iowa, an industry founded Dwolla rookie looking to cut fees paid by Visa generated methods.

The Boston Consulting Group (BCG) predicts that as technology promote the transformation of our shopping is expected to be paid in 2023 the industry will grow to twice its annual revenue in 2013 and more than 2 trillion US dollars. Of which a large part of the growth will come from to replace cash payments of developing countries. But BCG also predicted that worldwide digital technology to bring the traditional payment industry, "Challenges and Opportunities", will promote the existing credit card system to prove their advantages over other new competitors.

"Smartphones in the payments industry has spawned many variations." Now Matrix Partners venture capitalists, former eBay and PayPal executive home Dana Stalder (Dana Stalder) said. He is now a member of the Poynt director of the company, the company recently launched a smart credit card terminal. According to consultancy CB Insights data, venture capital investments in the technology sector to pay between January 2013 and June 2014 more than 2 billion US dollars,

However, the established players, especially banks and credit card companies are still processing the majority of non-cash payments today. But with the developments, their location but more secure. A good example is last year's high-profile launch of Apple Pay, it's not like Google Wallet and PayPal as an early technology, Apple Pay does not try to replace the user's bank card pocket. Open Apple Pay digital wallet interface, you will find it and had exactly the same bank card wallet. While another digital wallet LoopPay terminal can support more than Apple Pay, because it is simple, widely used process card compatible device simulation magnetic stripe credit cards, is equally dependent on the existing credit card system.

"Think about it, how long it takes the infrastructure was created," LoopPay CEO Will Grayling (Will Graylin) said, "to change the existing trade practices is very difficult."

Payments industry innovation to take root in developing countries are particularly vulnerable, because it makes it easy for users to skip the stage of a large number of ATM and checks directly into the field of mobile payments. For example, M-Pesa has become an important force in Kenya and Tanzania. It put the money into a mobile phone money - used to redeem airtime or purchase other items. Today, about 60 percent of adults in Kenya are using mobile phones to collect the money and pay.

What will hinder the development of payment technology boom it?

Security issues. Consulting firm Accenture recently surveyed 4000 consumers in North America found that while more and more people want to use mobile payment, but 57% of respondents were worried about the safety of such transactions. Two years ago this proportion was 45%.

The new technology will help users resolve security concerns. Apple Pay, Google Wallet will be created at each pay a one-time digital signature is sent to the system rather than sending the customer's credit card information, so as to protect the security of credit card information.

About Payment safety innovations tells us: now, if not overturn mobile payment industry, but at least it is now urgent to improve our upgrade of payment ecosystem.