Nacha 2014 presentation non bank payment systems revolution final 030714
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The document discusses the revolution of non-bank payments driven by new technologies. It describes how payments have evolved from early bartering systems to modern digital wallets and mobile payments. Technologies like NFC, BLE, and electronic wallets are disrupting traditional banks and driving new payment players like PayPal, Google, and Apple. Issues around security, regulation, and consumer adoption may impact how future payments develop, with mobile and proximity-based technologies like BLE positioned to transform in-store and peer-to-peer payments.
![Amazon Coins is a new way to purchase Kindle Fire apps,
games and in-app items from Amazon. The more coins you buy
the more you will save! Purchased coins are immediately
deposited into your account and they never expire. You can
choose to spend them immediately or save them up for later.
Facebook Credits are a virtual currency you can use to buy
virtual goods in any games or apps of the Facebook platform that
accept payments. You can buy Facebook Credits directly from
within an app using your credit card, PayPal, mobile phone and
many other local payment methods. [UPDATE]
Bitcoin uses peer-to-peer technology to operate with no central
authority or banks; managing transactions and the issuing of
bitcoins is carried out collectively by the network. Bitcoin is
open-source; its design is public, nobody owns or controls
Bitcoin and everyone can take part. Through many of its
unique properties, Bitcoin typically allows uses that could not
be covered by any previous payment system
VIRTUAL CURRENCIES
DIGITAL & CRYPTO CURRENCIES](https://image.slidesharecdn.com/nacha2014presentationnonbankpaymentsystemsrevolutionfinal030714-140331082943-phpapp02/85/Nacha-2014-presentation-non-bank-payment-systems-revolution-final-030714-23-320.jpg)
Nacha 2014 presentation non bank payment systems revolution final 030714
- 1. NON-BANK PAYMENTS REVOLUTION Kevin H. Connelly Executive Vice President The RWC Group [email protected]
- 2. OVERVIEW • PAYMENTS EVOLUTION • PAYMENTS REVOLUTION • DISRUPTIVE TECHNOLOGIES • MOBILE MERCHANT TECHNOLOGY • ELECTRONIC WALLET • NFC • BLE
- 3. THE EVOLUTION OF PAYMENTS 100,000 Years 3,000 B.C. 650 B.C. 960 A.D. Dark Ages 1950’s Past 20 Years Now Future.
- 4. OVERVIEW • NEW FRONTIER – CHANGES ALMOST DAILY • SOFTWARE VERSION “X.X” REPLACED WITH CUPCAKE, JELLYBEAN AND KITKAT • PAYMENTS UNIVERSE CENTER NO LONGER NY, CHICAGO OR LA – SILICON VALLEY • BANKS NO LONGER LEADING PAYMENTS INNOVATION • NON-BANKS LEADING – PAYPAL, GOOGLE, APPLE, SQUARE • TECHNOLOGY IS DRIVER – RAPID CHANGE IS NORM
- 5. THE REVOLUTION OF NON-BANK PAYMENTS tech·nol·o·gy tekˈnäləjē/ noun 1. the application of scientific knowledge for practical purposes, esp. in industry. •rev·o·lu·tion •ˌrevəˈlo͞oSHən/ •noun •1. a forcible overthrow of a government or social order in favor of a new system. pay·ment ˈpāmənt/ noun 1. the action or process of paying someone or something, or of being paid.
- 6. DISRUPTIVE MODELS/TECHNOLOGY • ITUNES • AMAZON • LINKED IN • PAYPAL
- 7. THE EVOLUTION OF NON-BANK PAYMENTS NEW PAYMENT PLAYERS – THE REVOLUTIONARIES • e-Commerce • E-Bay / Amazon / Apple • Retailers • Starbucks / Jamba Juice • Telecommunication • Isis • Pre-Paid Card Providers • Money Transfer Operators • Disruptors • PayPal / Google / Apple • Level Up / Square • Virtual Currency • Bit-Coin / Amazon • Angry Birds? • “The Cloud”
- 8. THE EVOLUTION OF NON-BANK PAYMENTS E-WALLETS In 2013 120 e-Wallet or Mobile Wallet Applications Gatekeeper Wallets Bank Wallets Retailer Wallets e- Commerce Wallets Aggregator Wallets Single- Feature Wallets
- 9. THE EVOLUTION OF NON-BANK PAYMENTS THE GEORGE COSTANZA WALLET http://www.youtube.com/watch?feature=pla yer_detailpage&v=yoPf98i8A0g
- 10. THE EVOLUTION OF NON-BANK PAYMENTS FACTORS DRIVING THE FUTURE OF MONEY?
- 11. THE EVOLUTION OF PAYMENTS E-WALLETS Hybrid Uses Not Just Payments
- 12. THE EVOLUTION OF NON-BANK PAYMENTS THE FUTURE OF MONEY? 31% CAGR / $1.6 Trillion
- 13. THE EVOLUTION OF PAYMENTS MOBILE PAYMENTS
- 14. THE EVOLUTION OF PAYMENTS MOBILE PAYMENTS
- 15. THE EVOLUTION OF PAYMENTS MOBILE PAYMENTS
- 16. THE EVOLUTION OF PAYMENTS MOBILE PAYMENTS
- 17. THE EVOLUTION OF PAYMENTS MOBILE PAYMENTS ? ? ?
- 18. THE EVOLUTION OF NON-BANK PAYMENTS FACTORS DRIVING THE FUTURE OF MONEY?
- 19. THE EVOLUTION OF NON-BANK PAYMENTS E-WALLETS NFC – Embedded Isis, Google Cloud QR Code Hybrid
- 20. THE EVOLUTION OF PAYMENTS E-WALLETS
- 21. THE REVOLUTION OF PAYMENTS MERCHANT SERVICES
- 22. https://www.paypal.com/webapps/mpp/credit-card-reader EMBEDED VIDEO REMOVED – LINK BELOW
- 23. Amazon Coins is a new way to purchase Kindle Fire apps, games and in-app items from Amazon. The more coins you buy the more you will save! Purchased coins are immediately deposited into your account and they never expire. You can choose to spend them immediately or save them up for later. Facebook Credits are a virtual currency you can use to buy virtual goods in any games or apps of the Facebook platform that accept payments. You can buy Facebook Credits directly from within an app using your credit card, PayPal, mobile phone and many other local payment methods. [UPDATE] Bitcoin uses peer-to-peer technology to operate with no central authority or banks; managing transactions and the issuing of bitcoins is carried out collectively by the network. Bitcoin is open-source; its design is public, nobody owns or controls Bitcoin and everyone can take part. Through many of its unique properties, Bitcoin typically allows uses that could not be covered by any previous payment system VIRTUAL CURRENCIES DIGITAL & CRYPTO CURRENCIES
- 24. THE EVOLUTION OF PAYMENTS ISSUES AND POTENTIAL ROADBLOCKS • Security • Fraud losses • Identity theft • Privacy concerns • Technology • Multiple platforms competing • No clear winner yet • Consumer/Business confusion • Safety • Non-bank accounts • Criminal activity • Regulation
- 25. THE EVOLUTION OF PAYMENTS REGULATION • Multiple regulators • Overlapping reviews and conflicting enforcement • New laws phased in and untested • Catch up mode • AML • CFPB
- 26. THE EVOLUTION OF PAYMENTS IMPACTS TO BANKS • Disintermediation • Revenue loss • Still most trusted • Checking account remains financial hub • Burdened by regulation and scrutiny • Innovate and invest? • Partner and private label?
- 27. THE EVOLUTION OF PAYMENTS IMPACTS TO BUSINESS • Risk model changes • Investment increases • Technology disruptors can impact business • Opportunities for cost savings • Opportunities for revenue increase • Opportunities for customer relationship building
- 28. THE EVOLUTION OF PAYMENTS IMPACTS TO CONSUMERS • Enhanced convenience • Increased security but with new risks • Opportunities for savings • Loss of privacy • App-mania • Identify theft • Confusion
- 29. THE REVOLUTION OF PAYMENTS WHERE TO FROM HERE?
- 30. THE EVOLUTION OF PAYMENTS WHERE TO FROM HERE? • Will regulation kill the debit/credit card? • Is NFC DOA? • QR / Hybrid • Level Up? • Google Glass? • Pocket Change? • So What is Next?
- 31. THE REVOLUTION OF PAYMENTS BLE IS NEXT
- 32. https://www.paypal.com/webapps/mpp/beacon EMBEDED VIDEO REMOVED – LINK BELOW
- 33. https://www.paypal.com/webapps/mpp/beacon EMBEDED VIDEO REMOVED – LINK BELOW
- 34. THE EVOLUTION OF PAYMENTS COMMENTS & QUESTIONS Next Gen Will Drive What’s Nexthttp://www.youtube.com/watch?feature=player_detailpage&v=yoPf98i8A0g