Thursday, February 26, 2004
Social Platform on Payment Systems
- solve the availability issues of bank branches in a pragmatic way,
- create a good working group to discuss introduction of EMV,
- further work on fraud issues for false euro-notes,
- steer towards more efficiënt payment instruments on the basis of the outcome of cost-research (to be published in March 2004),
- introduction of the rounding rule (round towards 5 eurocents) provided that enough players agree.
Posted by Simon on 12:59 PM | link
Wednesday, February 25, 2004
European Commission aims to clarify e-money before the summer
Posted by Simon on 5:32 PM | link
PayPal guarantees eBay auctions up to £250
At first sight this looks great, but it should be noted that the PayPal Buyer Protection Programme is only available on transactions involving sellers who have sold at least fifty items and who have a 98 per cent positive feedback rating. Qualified sellers are indicated with a Buyer Protection logo at eBay, but buyers must use PayPal to settle to qualify for protection.
In other cases, eBay's standard purchase protection programme offers up to £120 of coverage with a £15 processing fee.
Posted by Simon on 2:05 PM | link
Postbank stops m-banking on April 1 this year
Posted by Simon on 1:29 PM | link
Transfer of POS-contracts Interpay to banks
Most interesting is the possibility that this transfer leads merchants to reconsider their banking relationship altogether. The transfer can then be viewed as a switch-moment which leads to additonial decisions and changes with respect to the preferred bank relation of merchants.
Posted by Simon on 10:53 AM | link
And a solution to phishing...?
When a customer logs in to a bank's Web site, the bank shows the customer his PassMark -- a personalized image known only to the customer and the bank -- before asking for his password. Since a fake Web site will not know the customer's PassMark, it's safe for the customer to enter his password once he sees his PassMark. And PassMarks can also be used to authenticate outgoing email from the bank to the customer.
See also this analysis by Scot Loftesness.
Posted by Simon on 10:05 AM | link
Break-In at one of Israel's largest banks
Posted by Simon on 9:50 AM | link
Tuesday, February 24, 2004
Verifone SC 5000 pinpad certified
Posted by Simon on 11:29 AM | link
Urban Legends Reference Pages show ATM Camera
Posted by Simon on 10:16 AM | link
Friday, February 20, 2004
Yahoo launches money service
Posted by Simon on 3:58 PM | link
Moxmo also in the mobile top-up market
Meanwhile, the GTIAD is still working on its consultation document which will outline that mobile operator airtime earmarked for payment to others than the operator, will be treted viewed and regulated as electronic money. Both a short-term and long-term philosophy will be presented for comments to the market. And that will definitely change the regulatory wheather in favour of Moxmo.
Posted by Simon on 3:48 PM | link
Wednesday, February 18, 2004
Risk of magstripe continues
Posted by Simon on 6:21 PM | link
Tuesday, February 17, 2004
More supervision on payments (systems)
But as with e-money, we will undoubtedly face many more discussions on what payment systems are and what the specific roles will be of Authority Financial Market, De Nederlandsche Bank and the Nederlandse Mededingingsautoriteit.
Posted by Simon on 6:55 PM | link
Legally, anyone who receives a payment without any underlying legal basis (contract, gift etc) has a legal obligation to pay it back to the sender ('onverplichte betaling'). So even if one tries to keep hold of the money, the judge will rule that is has to be paid back.
Posted by Simon on 12:04 PM | link
Friday, February 13, 2004
Report of Financial Expertise Centre: charitative foundations do whitewashing...
Whereas these observations are disturbing the report notes that what's most disturbing is the likelhood that the research group has definitely only seen the tip of the iceberg. So we have a serious issue here.
Posted by Simon on 2:32 PM | link
Vodafone launches first UMTS-service
Posted by Simon on 9:35 AM | link
Wednesday, February 11, 2004
Paypal UK Ltd is an e-money institution as of February 12
This is a very remarkable moment, demonstrating that of all EU supervisors, the British FSA operates best. They did not hesitate to give licenses to Internet-based new entrants companies such as Moneybookers, Prepay Technologies and now Paypal. They've made Vodafone realize that a substantial part of its pre-paid business effectively is e-money, as a result of which Vodafone has a small issuer license. And as such they best contribute to creating a level playing field for electronic money.
Given the position of the FSA and Paypal, a lot of regulatory discussions on e-money may soon be untimely and out of date. All of a sudden EU-banks face a serious licensed competitor with a techological and market headstart. And while these main players battle for the digital e-money market, mobile telco's are left to find out how to solve their billing and regulatory issues. And unless they move quickly they will see their revenue from data-income from pre-paid users disappear completely.
Posted by Simon on 10:35 AM | link
Tuesday, February 10, 2004
Amex signs MBNA as its first U.S. issuer ; ABN AMRO prefers Mastercard
Amex and MBNA this year will roll out co-branded cards, "at which time product details will be available," a statement said. The companies will begin issuing cards in the United States, followed by Canada, Spain and the United Kingdom. Amex and MBNA first must await a final appeals ruling from the U.S. Supreme Court
At the same time, ABN AMRO announced that it has signed a worldwide deal with Mastercard as the preferred card. See this article in Newswire.
Posted by Simon on 4:33 PM | link
The costs of a single currency: false bank notes and slower payments
The introduction of the physical euro has been quite an expensive political endeavour. The monetary benefits of the physical bank note for the capital market are zero (as the euro was already used as an accounting and payments unit). There are however some benefits for Europeans when they travel. Yet let me explain why the physical Euro, in practice, is a serious loss maker.
1. We had to replace all EU bank notes before their economic lifespan had ended. This is costly and, as stated before, only gave Europeans a slight benefit (not having to change money when travelling).
2. The coins were designed at a designers table but are highly impractical. The result of giving the 1, 2 and 5 cents and 10, 20 and 50 cents the same colour is that longer time is required for payment in shops. The economic costs involved are considerable: the payment process at retailers takes more time to both consumer and retailer and thus costs more.
3. All Point of Sale systems needed to be upgraded to start working with the euro instead of the local currency. Again: a lot of costs, without gains.
4. The collectively designed bank notes can -for cost and negotiation reasons- never be as safe as the previously safest bank notes (presumably Dutch/German). So while for some countries the new bank notes are safer than before, for others they are more insecure. In the Netherlands the result is that we have higher costs related to having more false bank notes around.
I think it would be a good thing for the European tax payer if, the next time we do this single currency thing again, we would also endeavour on a rational calculation with respect to costs and benefits.
And it would definitely be the 'royal gesture' if the Dutch central bank takes its responsibility by partly compensating retailers for the extra costs incurred as a result of having brought into circulation bank notes that are less safe than the old one.
Posted by Simon on 11:20 AM | link
EPC Card Group report
The recommendations focus on practical issues such as deeper standardisation and combatting fraud. But more generally they intend to improve the governance structure between banks and card organisations so as to allow more transparent decisions on which part of the card business a bank wants to be in. To this end, interchange agreements are a must, so this is also noted in the document.
Of course the document outlines the desire to work closely together with regulators, but it also points out some issues where no further regulatory steps should be taken. What struck me particularly:
digital certification services in the payment sector (a deeper understanding of the issues is necessary before progressing in this field),
I couldn't agree more.
Posted by Simon on 10:57 AM | link
European Banking Industry Committee now coordinates contact with European Commission
The EBIC was established by the main banking industry federations: the European Banking Federation (FBE), the European Savings Banks Group (ESBG), the European Association of Cooperative Banks (EACB) the European Mortgage Federation (EMF), the European Association of Public Banks (EAPB), the European Federation of Building Societies (EFBS), and the European Federation of Finance House Associations (Eurofinas) / the European Federation of Leasing Company Associations (Leaseurope).
Posted by Simon on 10:42 AM | link
Monday, February 09, 2004
Private or public identity?
Posted by Simon on 10:24 AM | link
TACD's online survey on spam
Posted by Simon on 10:13 AM | link
TSYS cuts 4 % of its workforce
Posted by Simon on 10:00 AM | link
Saturday, February 07, 2004
Volkswagen will start bank in the Netherlands as well
Posted by Simon on 1:28 PM | link
Thursday, February 05, 2004
False 100 euro notes for retailers and false credit-cards for air line companies
Meanwhile, air line companies (notably KLM) face an increasing number of fraudulant credit-card transactions. Flights to Afrika or Latin America that leave shortly are more often being paid with falsified cards or card numbers. Some of the tickets that are being ordered are then sold cheaply via Marktplaats.nl. The buyers of these tickets however may never be able to travel as air line companies are now checking the validity of payments (and sometimes withdraw the e-ticket).
Posted by Simon on 6:24 PM | link
SIIT 2003 Program on Standardization
Posted by Simon on 5:14 PM | link
How telco applications are useful to banks....
Neteconomy for example is a company that started out detecting false/fraudulent phone calls, to discover that its technology is also useful for banks. This press release contains a testimonial by Nationwide Building Society to that effect.
Posted by Simon on 11:54 AM | link
Wednesday, February 04, 2004
Skimming fraudsters convicted
With the information they made new debit-cards, which were used at ATM's in the Nederlands, Belgium and Germany. The revenue was 600.000 euro. The two criminals face punishment of 4 years and 2,5 years in jail as well as a fine to be paid to government. Tomorrow, the main suspect will get to hear his verdict.
Update thursday: the big mind behind the crime is convicted to 3,5 years of prison and needs to pay 35.000 euro to the State.
Posted by Simon on 5:04 PM | link
Russians stop using the dollar... Olympics stick to Visa
To remain with the subject. Theory also tells that the use of payment instruments is contingent on force: the power to prescribe usage of particular instruments. In the same FD it is noted that Visa has established its 11th sponsorship of the Olympic Winter Games in Turin. Meaning that all people either pay cash or with Visa (but not with anything else...).
Posted by Simon on 11:40 AM | link
AT&T PrePaid Web Cents Technology: nice white labeling example
Prepaid specialty cards supported by AT&T PrePaid Web Cents technology are sold at traditional retail outlets. They carry a specific content provider's brand and are used to purchase that provider's online content.
The specialty cards can be used to purchase a variety of online content such as interactive games, ring tones, graphics, maps, guidebooks, digital music, streaming audio and video, software, research services, and more. Each card is issued by the content provider and is exclusively for use on its site.
I think this trend may also come to Europe. In the end all retailers/content provider want their own relationship with the customer. And if they can avoid legal hassles with respect to e-money while doing so, it will be all the better.
Posted by Simon on 10:54 AM | link
Tuesday, February 03, 2004
Poynter Online - E-Media Tidbits
With this news, I sincerely hope that regulators and supervisors will turn out to be somewhat self-reflective as to the effect of their behaviour in 'shaping' the e-money market of the future. It's quite easy to say that there is no business case for micropayments if one allows free riders to make the real bucks.
Posted by Simon on 4:36 PM | link
Postbank recoups with My Postbank NL
Mijn Postbank.nl is a free Internetbased environment allowing identification with a user-id/password combination that is chosen by the users. Any transaction requires the use of a Transaction Authorisation Number. Whereas these used to be distributed in lists of 100 (via snail-mail) Postbank now offers to send these via SMS, at the moment of the transaction.
The MyPostbank.nl environment offers users a full overview of all Postbank products and allows the user to reverse a direct debit and to view one year transaction history (often a problem with Internet-banking). And in comparison with other banks, it now allows world-wide web-access and usage.
What's missing in the information is the vision of the future. I cannot imagine that Postbank will support the old off-line Girotel until the end of times. So at one point in time I'll be forced to make the conversion to the off-line world. This is not being mentioned on the website. But if you look closer it shows that it is no longer possible to apply for Girotel and that Girotel (for now) will co-exist with MyPostbank.nl.
Posted by Simon on 11:52 AM | link
Dutch banks will be more open...
Todays Financieele Dagblad notes that the Dutch competition authority does not recognize the critical note of Collee on their functioning. What Collee stated was that the new financial monitor of the NMa created a bad image while not containing any substantial evidence as to problems in the market. In reply the NMa now says that it finds that banks generally are satisfied with the supervision of the NMa..... (as if any supervised entity would ever tell its supervisor different...?).
Posted by Simon on 10:49 AM | link
Monday, February 02, 2004
eBay and Paypal penetrate by offering spam-free mail...
Now, that looks like an interesting and timely penetration strategy.... People will use internet more often to buy and will need an overview. They are sick of spam. So this offer solves a part of their problems. And within the year they'll be using more eBay and Paypal.
Posted by Simon on 7:11 PM | link
Nedap takes a write-off on Mobile Pay
Posted by Simon on 6:23 PM | link
Does your IBAN work...?
Would you believe me if I said that this company was an FSA-licensed registered credit-institution?
Posted by Simon on 6:12 PM | link
US customers prefer debit now.... start of international convergence?
- debit cards: 38 %
- standard credit cards: 22 %
- co-brander credit card: 20 %
- loyalty credit: 15 %
- smart credit: 2 %.
The study also showed that the desire to reduce the cost of their payment cards, increase their personal financial discipline and earn greater rewards have been the primary reasons that:
- nearly 50% of consumers are using a card that wasn’t in their wallet a year ago,
- nearly 40% of consumers have canceled or reduced the use of ~2 cards during the same period.
One might conclude that slowly, the payment arena might be moving towards a more similar usage of the best/cheapest/efficient payment methods (debit rather than credit). So although the old classification of the US a s credit-card country is still correct, it may not be in 5 years time.
Posted by Simon on 10:35 AM | link
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Retail payments are still very much influenced by local conventions, regulations etc.....
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