Friday, October 31, 2003
VendexKBB introduces its own ATM's.....
The introduction of own-name cash dispensers is taking place in close cooperation with Vendex KBB Cards & Financial Services (CFS), a Group company which was set up last year to develop and market financial products and services for various retail formats. For the introduction of cash dispensers Vendex KBB is working together with the British cash dispenser supplier De La Rue and Staalbankiers.
Posted by Simon on 4:49 PM | link
Willem F. Duisenberg: time to say goodbye
Posted by Simon on 2:28 PM | link
Thursday, October 30, 2003
228 million SMS/e-money payments in 2003 in the Netherlands
- the quarterly turnover was € 124 million euro leading to an estimated total turnover of € 457 million in 2003,
- more than 10 percent of Orange's turnover is related to data income, resulting in an amount of € 45 million data turnover in 2003,
- about 75 % of the data income is SMS income, resulting in € 34 million SMS turnover for Orange Netherlands,
- Orange has a 10 percent market share, resulting in an estimated € 340 million SMS turnover for 2003 or approximately 523 million SMS's in the Netherlands,
- two thirds of the SMS's are coming from pre-paid users, resulting in 345 million SMS messages for a value of € 224 million,
- two thirds of the premium SMS's are not delivered by the operator itself but by third parties.
The resulting conservative estimate is that 228 million SMS e-money payments will be made in 2003 for a value of € 150 million. These payments qualify as e-money payments, as they are being paid out of the electronic money value issued by the mobile operators and to companies other than the operators themselves.
Last years estimate was a value of € 65 million and 100 million e-money SMS-messages. As can be expected with successfull retail payment mechanisms, the current growth percentage for e-money SMS-payments is 230 %. Consequently it may be expected that in 2004 the number of Dutch SMS/e-money payments will outnumber the total number of paper-based and Chipknip payments in the Netherlands.
So do I hear anyone claiming that e-money will not work ? Or that it is an obscure development ?
Posted by Simon on 3:39 PM | link
Halifax e-mail scam....
Posted by Simon on 12:30 PM | link
Wednesday, October 29, 2003
Sony, DoCoMo team up for e-money cell phones
Posted by Simon on 12:09 PM | link
New billing... what's that ?
Yesterday I've had the pleasure to contribute to a seminar of TPG Post on new billing. You may wonder what that is.
Well, in New Billing a direct marketeer views the physical bill not as something alien and costly, but as an opportunity to once again reach the customer and further intensify contact. Given the animated discussions and case sessions at this seminar we may expect to hear more about this concept in the future.
Posted by Simon on 11:31 AM | link
Het Financieele Dagblad
Posted by Simon on 10:16 AM | link
Tuesday, October 28, 2003
Napster to offer prepaid cards
The company is aiming the card at teen-agers without credit cards and parents who want to give the gift of legal music downloads. The card features the familiar Napster "kitty" logo and is activated at the point of purchase.
So, with the end of the 'everything for free-era' on the Internet, we now see the rise of pre-paid mechanisms to allow controlled spending on the web.
Posted by Simon on 9:52 AM | link
Monday, October 27, 2003
Belgium Argenta may offer current accounts in the Netherlands
Posted by Simon on 11:06 AM | link
Two pin-codes for one debit-card?
The banking sector has taken the idea into consideration but explained to the inventor that it would be technically too complex and that it would confuse the consumers. But the inventor seems keen on pursuing the idea, now that he has invested a couple of thousands euro's in Patent application.
What disturbs me in the article is that it might suggest that banks would not be willing to adopt good ideas that may reduce fraud. They do adopt those ideas, yet operating and designing retail payment systems is a little more complex than people may imagine. So the chances that an outsider comes up with a brilliant solution to such industry problems are close to zero.
The exception to this rule is of course the Memo-card; this is small piece of carton on which you may encode / hide the pincode by using a four-letter word in between a number of other four letter words.
Posted by Simon on 11:05 AM | link
Way2Pay: 450 shops and 15.000 users
Earlier this year Rabobank announced it would introduce its own version of Way2Pay. I'm curious as to the pricing structure and load instrument that they've decided to use.
Posted by Simon on 10:48 AM | link
More and more euro-falsifications
The amount of false bank notes taken out of circulation was 145.153 in the first half year of 2002 and is 230.534 in the first half year of 2003.
Posted by Simon on 10:39 AM | link
Friday, October 24, 2003
Consultations of our Ministry of Finance
-Wet Financiële Dienstverlening
-herziening financieel toezicht
Posted by Simon on 4:35 PM | link
Financial Action Task Force on money laundering: session of October 1-3, 2003
Posted by Simon on 4:18 PM | link
Thursday, October 23, 2003
Scan, pin and go at the Hema !
Scan, Pin and Go
Additional research on the web shows that it is a NCR product, installed by BK Vision. It has been in use since februari 2002. See also the images below.
Posted by Simon on 5:59 PM | link
Tuesday, October 21, 2003
Great goody for Chipknippers at Albert Heijn...
Well, Chipknip and Albert Heijn have agreed to promote the use of the Chipknip for small payments in the shop. This eliminates the need for coins, but then again, we often need those coins to unlock a shopping cart for use in the shop. So if we are to use the Chipknip, Chipknip might as well provide a solution, a coin in the format of the 50 eurocent, for future use in the Albert Heijn shopping cart. Which is exactly what Chipknip en Albert Heijn do, provided that the shopper pays with Chipknip (and perhaps gets his first time Chipknip-experience).
So although I don't often get excited in the supermarket at the point of sale, this time I really admired the work of the marketing team that developed this promotion. It's very well focused, targeted and fully in line with the need to make payment and shopping as easy as possible. Excellent work !
Posted by Simon on 3:40 PM | link
Can existing payment networks meet future needs?
The conference summary is available here.
What I appreciated in the summary:
Payment innovations may take longer to adopt than innovations in other industries because of the need to balance the interests of multiple agents—consumers, merchants, financial institutions, and networks. In addition, payment providers must often operate both legacy and new systems side by side, increasing costs in the short run.
Posted by Simon on 3:31 PM | link
Visit of Her Majesty Queen Beatrix to ECB
Posted by Simon on 12:07 PM | link
Monday, October 20, 2003
Credit-cards repayment rates too high....? !
The Chief executive of Barclays - the largest credit card provider in Britain - said yesterday that he would not use a Barclaycard to borrow money because the repayment rates were too high.
Matt Barrett, one of Britain's best paid executives who earned £2.7m last year, made the unexpected comment to MPs on the Treasury Select Committee, which is examining the consumer effects of the credit card industry.
Posted by Simon on 10:40 PM | link
Friday, October 17, 2003
No real risk for money laundering in electronic payment systems !
Posted by Simon on 8:56 AM | link
Thursday, October 16, 2003
Maersk Sealand and Citibank announce on-line B2B payment solution
Citibank developed a customized implementation project to meet Maersk Taiwan Ltd's requirements by incorporating the advantages of Citibank's on-line banking and financial service. CitiConnect Online Service is part of Citibank's EBPP (Electronic Bill Presenting and Payment) architecture, which covers complete on-line solutions from presenting bills, managing disputes, and online payments.
Through the integration of CitiConnect Online Service and Maersk Sealand's e-commerce website, Maersk Sealand customers in Taiwan may pay from non-Citibank accounts and even release payments after banking hours to proceed with the printing of Bills of Lading.
Posted by Simon on 2:30 PM | link
Wednesday, October 15, 2003
Credit-card more popular in the Netherlands...?
1998: 120 million euro
2003: 280 million euro
Meanwhile, the actual numbers of credit-cards in circulation, according to the Dutch Bankers Association, is diminishing from 4,7 to 4,5 million. How can this be?
My explanation is that the summerpeak reflects already existing lending behaviour rather than suddenly increased popularity of the credit-card. We used to go on holidays and bring our guaranteed cheques with us to obtain money (and overdraft our current accounts). Now that since 2002, this type of cheque is not in use any more, some of the lending has shifted to the usage of the credit-line with the credit-card.
Posted by Simon on 9:38 AM | link
Tuesday, October 14, 2003
SMS Gold Rush: beware of the e-money rules
Some services that are legal in one country may be illegal in another and often the interpretation and implementation of regulations can be different in the same market. For example, Vodafone UK does not allow micro payment services for all of its customers and 02 only makes such services available to its contract customers due to individual interpretations of the recent E-Money legislation.
Posted by Simon on 10:37 AM | link
Monday, October 13, 2003
It's all about prepayment now....?
Oriental Bank of Commerce and Mastercard: OBC Prepaid card; The card is available from Rs 1,000 to Rs 50,000 and can be recharged any number of times at select OBC branches. The card is accepted at more than 60,000 merchant establishments and for withdrawing cash at MasterCard's network of 4,700 ATMs in India,
-Starbucks Duetto card, is the first prepaid card that also functions as a credit card. In addition to “loading” the card with cash that you can then spend inside Starbucks stores, as with most prepaid cards, you also can use it as a credit card at any merchant that accepts Visa. When consumers use the card as a credit card, they earn points that can then be redeemed for beverages or merchandise at Starbucks,
-Digi Beyond Prepay, automatically reloads pre-paid accounts from Visa-credit-cards,
-American Express Prepaid Travel Card, the new TravelFunds Card can be loaded with up to $3,000, or an equivalent amount of euros or British pounds. It can be used at any retailer or automated teller machine worldwide that accepts American Express cards. Consumers must fund the TravelFunds Card through an existing credit or debit card,
-CAMEL 3: SMS roaming for prepaid phone users, developed by Comverse. CAMEL-3 for SMS allows GSM operators to offer real-time charging for Mobile Originated Short Messages (MO-SMS) without the need for proprietary devices. The Comverse system supports a wide variety of real-time billing options. Charges can be based on the location of the sender, the destination of the message, the date and time, and more. Similarly, CAMEL-3 allows real-time charging for data services.
Posted by Simon on 4:44 PM | link
The Review of Network Economics: special issue on payment systems
Posted by Simon on 10:15 AM | link
Sunday, October 12, 2003
Legalities in parking payments
The jugde in this new case is actually basing the verdict on some independent thinking rather than looking at the similar trial in Den Haag. Actually the judge is diving into a non-decided legal debate on the status of a Chipknip betaling. And chooses to view the Chipknip betaling as different from a giro payment.
In my view, the judge may want to reconsider his/her opinion on the basis of reading the single one best thesis on this issue: a thesis by Elvira Büchner. In 1999 she won the legal faculty price of the University of Nijmegen for her graduation paper about the legal aspects of chip payments. Essentially she views the chipknip payment as a split up giro payment, where there is a time lag between the debit-side of the payment (the load) and the credit-side (the actual payment).
Although some people are happy with this verdict my guess is that some personal irritation of the judge may have played a role in the ultimate ruling. And my prediction is that the ruling will be overruled in due time.
Posted by Simon on 6:50 PM | link
Visa and Mastercard to reduce interchange fee in Australia
See also the press release of the RBA and their page on the reforms to credit card schems. Briefly, the reforms include a 40 per cent cut in interchange fees that banks charge each other for processing the transactions, estimated to be worth $1 billion a year. The changes will also allow retailers to charge customers extra for using a credit card and allow new non-bank players to enter the market.
Chris Connolly, of the Consumer Federation of Australia, said the ruling meant savings of up to $600 million in the first year of the reform.
"It's a big victory for consumers," he said. "There will be a domino effect across the banking system. We are hoping people will move from using . . . credit cards to cheaper options like Eftpos. That will save merchants and consumers a lot of money."
Well, speaking about landmark cases. This year the Wall-Mart settlement was already a blow to credit-card schemes. And now, they're being hit by the regulators as well. Credit-card schemes won't ever be the same no more.....
Posted by Simon on 5:28 PM | link
Paying to charities... why use cash?
Posted by Simon on 5:07 PM | link
Thursday, October 09, 2003
Wellink states that consumer is going to pay for more efficient payments
Faced with the question how to make the payment system more efficient, Wellink suggests that we use the price-mechanism. In plaintext: consumers may prepare because they will be facing the introduction of fees for their retail payments. And this will be backed by the research in the Social Platform on Payment Systems.
Posted by Simon on 12:23 PM | link
ABN AMRO: pilot or operations first?
By adding Café DE to our bankshop, we hope to make the bank even more inviting for our customers. It also gives us a chance to discuss the customer's banking needs in a more informal setting.
The bankshop will have the same opening hours as the surrounding shops, which means that it stays open longer and will also be open on late-night shopping days and Saturdays.
The announcement comes at an interesting time. Right now I am on the receiving end of payment from an ABN AMRO customer. This customer informs me that at this very moment no payments can be made. Customer service of ABN AMRO informs him to try again tomorrow. Apparently the systems are down since yesterday evening when this customer first tried to arrange for the credit-transfer by phone.
So if we generalize these two events, we can draw up an important lesson from payments industry. Pilots are a very good thing to test the waters. But pilots should never stand in the way of the continuity of core operations such as payments.
Posted by Simon on 11:58 AM | link
Wednesday, October 08, 2003
Dutch build Arab SMS-payment facility
Posted by Simon on 4:37 PM | link
Tuesday, October 07, 2003
Dexit ; RFID e-money application
Canadian banks, TD Canada Trust and National Bank, and wireless operator, Telus Mobility, are participating in Dexit debit express, a new stored-value cashless debit payment system. With Dexit, consumers can easily make small-value purchases by tapping an electronic tag on a merchant’s reader. Payments are debited from the consumer’s account, which can be reloaded to a maximum of CD 100 daily, at a cost of CD 1.50 per reload.
With Leo van Hove (who provided the link) I share the opinion that the future will see more similar hybrid payments instruments that are inbetween the pay now and pay before segment. Another one of those examples is the pre-authorised debit application by Mastercard. This provides the consumer with a guaranteerd payment facility at Point of Sale, but the money does not need to be loaded on the card. Instead, the payment facility draws on a blocked amount of money (reserved for this purpose) in the customers current account. And this would then not be e-money but remote access.. !
- article in Star
- the website of Dexit.
Posted by Simon on 11:29 AM | link
Monday, October 06, 2003
Interoperability is a matter of common sense
Now, although this appears to be common sense to all, it appears that regulators or supervisors are only too often unware of the fact that standardisation will occur as a matter of common sense in the market. For a more elaborate discussion of this issue, please read this chapter on Standardizing Retail Payments.
Posted by Simon on 12:44 PM | link
The Future of Money .....
Those interested in joining a debate/conference on these topics might consider going to The Future of Money Summit 2003.
Posted by Simon on 11:48 AM | link
Payments in the media this weekend
Then on the Saturday edition of Kassa, the use of the direct debit instrument was once again subject of debate. Gijs Boudewijn, representative of the Dutch Banker's association assured the public that banks would take additional measures to get rid of errors and fraudulent use of the direct debit by companies.
Posted by Simon on 11:38 AM | link
Thursday, October 02, 2003
Now, where is this going to leave the other P2P e-mail systems (Send Money, Way2Pay .. etc)? If Citibank doesn't get this one to work within their business model, how will ING make Way2Pay work?
Posted by Simon on 10:19 AM | link
Current weblog List of publications
Retail payments are still very much influenced by local conventions, regulations etc.....
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