Category Archives: Paypal

Apple in Payments – A Disruptor’s dilemma

signatureThis post is an attempt to look beyond what the presence or absence of any specific radio in iPhone6 may mean to Apple’s intent in Payments and instead – provide some color around three things that are part of this debate: a) Bring 800M credit cards on file in perspective b) Address the question of radios on the device – a topic that has a disproportionate share of the debate and finally c) Consideration of steps made by Apple to secure both iOS and its devices as waypoints in its payments journey. Oh wait, that last one is not part of the Apple payments debate today. I believe it should be. Read on to see why. Continue reading

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Tokens and Traditionalists

Stop-Hating_1066824Two recent comments led to this post. One is by David Marcus of Paypal who long held fast to his belief that NFC based payments had high barriers to entry – cost, complexity while offering very little upside. Paypal’s position on NFC (Not For Commerce) had always been a bit zealous – understandable as in a world of Secure Elements – Paypal (and many others) could not meaningfully participate. But Marcus’s recent post is an attempt to view NFC/HCE as one of the three trends that could transform the retail payment experience – is a pragmatic view to a complex and heterogeneous retail environment. Marcus speaks on how Paypal has come to adopt a cautiously optimistic view of NFC/HCE, now that there are no gatekeepers extracting a toll and because HCE (thanks to SimplyTapp) finally offers a level playing field in the Android ecosystem. Continue reading

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MCX Part II – Waiting to Exhale

Solipsism of Payments

For an ecosystem that has been described as unfair and out of balance, creating a prevailing atmosphere of mistrust, the payments industry should really look to the MacWorld Expo of 1997 for lessons to its future.

“We have to let go of this notion that for Apple to win, Microsoft has to lose.”

What Steve Jobs meant was that for Apple, this was not a zero-sum game. Apple dominated in the years since, by creating new markets, and devices that captured both minds and marketshare. Continue reading

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Seven clicks to None: Paypal’s changing raison d’etre

Logistics

On Friday, a story caught my eye. No, it was not the “rumored” Apple entry in to mobile payments. That is a post yet to be written. This was actually a story on the ReadWriteMix with David Marcus of PayPal. And the direction indicated by David Marcus for Paypal – even if it were simple, incremental improvements to the checkout process – portends important things for Paypal, and more so for its merchants – both online and offline. To me, it seemed like David Marcus was challenging Paypal to step out of its comfort zone and find its relevance in retail – once more. Continue reading

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Lessons from a breach

iceberg

In the days following the Target breach, both clarity and objectivity are in short supply. Everything that didn’t already exist became suddenly the cure-all – EMV being one. Retailers bristle, albeit in private – due to the asymmetry in blame they have come to share compared to banks – despite having equal ownership of the mess they have come to call payments. Issuers and Schemes scramble to find an empty deck chair on the Titanic, just to get a better view of the first of the lifeboats capsizing. Continue reading

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Square Cash is a Head Fake

What follows is a collection of my thoughts, tweets, emails on the launch of Square Cash. I welcome your thoughts below.

First up, it’s not just Square Cash. The whole P2P space is a head fake. But let’s focus on Square. Continue reading

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$25M and a dash of naiveté

OnedoesnotfixMuch has been said and written about Clinkle, and it’s unfortunate that it will now forever be (fairly or unfairly) defined not by the merit of its idea or growth efforts, but by the $25m funding that it has received to help it “disrupt” payments. I wouldn’t venture to say that Payments has finally jumped the shark, I think the shark has been jumped so many times that it is now a paid regular and has health insurance. It’s not exactly a surprise that we found better success in emerging economies where both a lack of retail banking and a payment infrastructure has led to a thriving alternative banking and payments ecosystem. And we found apathy everywhere else. Continue reading

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MCX – MerChants reduX

mcx-logo-leadMCX – MerChants reduX: Recently, I spent an hour chatting with friends of mine who launched a small business about what worked and what didn’t. When the topic veered off to card acceptance costs, the reaction was visceral – one of absolute loathe and the struggle to understand the myriad ‘Do’s and Don’ts’ of what cards to accept, and how to accept them. In the end, they had swore off Amex cards because the acceptance cost was above their product margins. I told them about Square and how it could allow them to continue taking Amex and pay a lower rate. But that had me thinking about MCX and what it could mean for small businesses. The post that follows is a collection of thoughts around MCX, why it deserves respect, and yet how it is indeed mortal and bleeds like all others. Continue reading

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There and Back again – A customer journey with Paypal

I remember creating my Paypal account back in 2000 when an acquaintance of mine wanted to split the lunch tab with me, and sent me $20 via email a couple of days later. I remember hurriedly opting to cash out via check, having little trust in a newfangled payment startup. That $20 actually languished in said Paypal account (despite issuing a check that ended up never being cashed) for another couple of years before I actually did something with that money and my Paypal account. What follows is the rest of that journey. Continue reading

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