The Bankwatch

Tracking the consumer evolution of financial services

Archive for the ‘Payments’ Category

German and French banks push ahead with new debit card scheme | Finextra


Not often we see a plausible alternative in the payments space from banks, but here is one in the works.

German and French banks push ahead with new debit card scheme | finextra

Bundesbank board member Hans Georg Fabritius told the conference that a Visa and MasterCard duopoly is “an unsatisfying vision” for political and economic reasons. However, he warned that while the French and German project, called Monnet, is “promising” it is only a concept and he would want other countries to join in.

Written by Colin Henderson

July 12, 2009 at 22:30

Posted in Debit cards, Payments

Tagged with ,

DOCOMO to Launch Mobile Remittance Service


Banks continue to be challenged by disintermediation from telco’s and here is another example, this time in Japan.  The service will launch 21st July, and allow sending up to $200 with only the payee’s phone number being required.

An interesting tweak is the ability to have the money deposited with DOCOMO under the guise of a credit to your account, however this is deposit taking by another name.

DOCOMO to launch mobile payments service

Customers of DOCOMO’s i-mode™ mobile Internet service on the FOMA™ 3G network will be able to remit up to 20,000 yen (about 208 U.S. dollars) per transfer, basically just by inputting the payee’s mobile phone number. The payee receives a mail notification via their DOCOMO mobile phone and is given the option of depositing the money in a domestic bank account or having the amount credited to their monthly DOCOMO phone bill. The payee can receive remittances totaling up to 200,000 yen (about 2,080 U.S. dollars) per month.

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It is a lucrative service with charges to payor and payee.

The charges per payment (including consumption tax) will be 105 yen for the payer and 65 yen for the payee.

Researched by Nobuyo Henderson

Written by Colin Henderson

July 4, 2009 at 17:15

Bell, Rogers, Telus to launch mobile payment service | Canada


Canadian Telco’s beat the banks out with the first serious country wide example of mobile payments in Canada, and frankly one of few in the world.  This is just one more example of disaggregated financial services, that cip away parts of what was previously banks’ territory.

The use of NFC technology is also worth noting here.  NFC (Near Field Communications) permits wireless data transfer over distances up to 10 cm.  This is designed to eliminate accidentally purchasing Dave Birch’s coffee for him.

In all seriousness while this has been a long time coming, my sense has always been that the telco’s would be front and centre in the payments business.  The 3.5% fee they are charging is essentially money for next to nothing to them in terms of revenue vs outlay.  They already have the riht deveice in the hands of consumers so they are off to the races.

Bell, Rogers, Telus to launch mobile payment service

The venture is the first tentative step toward a true mobile wallet, where phones equipped with the NFC chips themselves could be used in everyday transactions. Such phones are already in use in countries like South Korea and Japan, but have yet to come to North America except in trials.

Robin Dua, president of Enstream, said he hopes the service’s use of the NFC-enabled cards will pave the way for future adoption of NFC chip-enabled phones.

The software will work on most smartphones, including many of Research in Motion’s BlackBerrys. An iPhone application is also in the works he said.

Written by Colin Henderson

June 14, 2009 at 20:20

Posted in Payments

Tagged with , , , ,

Fiserv try to kick start mobile banking with Mobile Money FastTrack


Mobile still gets more attention from Vendors than it does from many banks and this continues to surprise me.  Certainly the large banks have uptake in their mobile offerrings, but it is not stellar growth.  Tower Group recently noted the economic crisis could change that.

Meantime here is another excellent offerring from Fiserv that appears to be geared to help banks get over that hurdle by making the integration of mobile transactional banking and payments easier and faster to implement.

Fiserv

Brookfield Wis., June 1, 2009Fiserv, Inc. (NASDAQ: FISV), the leading global provider of financial services technology solutions, today introduced Mobile Money FastTrack™, a straightforward mobile banking solution that can be rapidly deployed by financial institutions. Mobile Money FastTrack, a streamlined version of the flagship Mobile MoneySM solution introduced by Fiserv in 2008, delivers essential mobile banking features within an affordably packaged solution that can be enhanced as the mobile channel matures.

Mobile Money FastTrack can provide “triple play” technology that enables consumers to access their accounts using any of the three primary mobile access modes: mobile browser, SMS (text messaging) or a downloaded application.

The available downloaded application technology also supports mobile banking on high profile devices such as BlackBerry® smartphones and the Apple® iPhone™.

Relevance to Bankwatch:

I mention ‘transactional’ banking for mobile because at the root of the hurdle for banks is the lack of consumer drive in North America for mobile. I attribute this to North American consumers coming to the mobile space late, but also and importantly, they are already avid online banking users with decent connectivity wherever they require it, which leaves them wondering what more mobile can bring to them.  Questions North Americans ask themselves are how the mobile fits with their current online banking habits.

With the exception of new markets, eg unbanked, banks would do well to help consumers with the answer to that question.  For example inclusion of payments (bills and remittances), account alerts, or tagging expenses while making purchases are the kinds of things that might supplement the users experience.  Note the Fiserv offerring mentioned above has payments included.

Written by Colin Henderson

June 1, 2009 at 10:23

Posted in Payments

Tagged with , ,

Mizuho Bank & NTT DoCoMo plan to launch a financial services and remittance service


Mobile payments continues to grow worldwide, yet limited in North America so far.

Mizuho and NTT DoCoMo launch mobile payments service

Mizuho Bank, in partnership with NTT DoCoMo plans to launch a financial services and remittance services via mobile phone

NTTドコモがみずほ銀行と提携し、携帯電話を使った送金サービスなどの金融業務に乗り出す方針であることが26日、わかった。

Researched by Nobuyo Henderson

Written by Colin Henderson

May 26, 2009 at 20:57

Posted in Payments

Tagged with , , ,

Rogers Wireless joins RBC and Visa m-payments pilot


This is an exciting development.  After reporting on the far east and their advances in types of wireless payments, RBC in Canada and Rogers wireless announce a new pilot in the works. 

Rogers Wireless joins RBC and Visa m-payments pilot

RBC (Toronto:RY.TO)(NYSE:RY), Visa and Rogers Wireless have come together for the next phase of the mobile phone payment pilot, which will ultimately allow Canadians the flexibility to make purchases securely at the point of sale with a wave of their mobile phone.

Its to be aimed at small payments, and using Motorola phones.  That latter point is a hinderance it its limited to one phone, but hopefully thats only for the pilot.

The technology used is Near Field Communication (NFC) that is described at Wikipedia as –

a short-range high frequency wireless communication technology which enables the exchange of data between devices over about a 10 centimetre (around 4 inches) distance.

In Tokyo last time I noticed the prevalence of smart wireless payment cards.  I have a Pasmo card that was for the subway, and now I can use in convenience stores, and other merchants.  Which all leads to the question of whether the future will be contacless cards or phones.  The answer is likely both.

Others in Japan:

Suica issued by JR East (Railway). Uses RFID.

Pasmo issued by Passnet (other rail providers than JR).  Uses RFID.  Works best for Tokyo people because it works on Tokyo Metro.

Registered PASMO

Written by Colin Henderson

November 2, 2008 at 23:44

CashEdge announce a service that allows small business to transfer funds between banks


CashEdge announce a service that allows small business to transfer funds to their own accounts at another bank.

CashEdge Launches Me-to-Me Transfers for Small Businesses

Small Business Me-to-Me Transfers, part of the TransferNow for Small Businesses Product Suite, enables financial institutions to offer secure inter-institution funds transfer services to their small business customers.

Written by Colin Henderson

October 28, 2008 at 12:28

Posted in Payments

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