Aneace's presentation at the EFMA conference in Paris, September 11th 2008.
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“In 1979, magnetic stripes on the back of credit cards allowed retailers to swipe the customer’s card through an electronic dial-up terminal, which accessed the bank’s cardholder information.
“The advantage of this system, besides saving paper, was the increased speed of processing authorizations – one to two minutes. It also decreased credit card fraud.”
29 years
Source: 24th April 2006 BusinessWeek, BCG.
Internet payments
Mobile payments
Contactless Biometrics
Prepaid
Loyalty
Micropayments
EMV
P2P
NFC Mobile
banking
“What problem does this innovation solve?”
“What pain does it alleviate?”
“What value does it deliver?”
“Who cares?”
The key questions
Source: The Paradox of Pain, www.chrisoleary.com
“A great idea eliminates a significant source of pain for a large number of people.”
Source: The Paradox of Pain, www.chrisoleary.com
Contactless: a card innovation
that benefits merchants?
1 out of 133 “There are 6 million places where you can use your credit card, 45,000 (contactless locations) doesn’t excite me.”
John Suchanec, Bank of America
“Waving a card in front of a reader takes about as much time as swiping one through.”
Manager, Sheetz, Inc.
Contactless forecasts for 2007
230 million
Jupiter Report (2004)
37 million
Jupiter Report (2006)
25 million
Card Technology (June 2007)
WHERE’S THE PAIN ?
US$16 billion
Return Fraud (US)
US$3 billion
Card Fraud (US)
Newspaper ad, half page:
9,000 - 12,000
Co-op package mailing,
1 insert: 350
Local coupon book,
1 page: 350
Europe Pakistan China
Promotional marketing is huge ($342 billion in the US alone!)
“Introduce payment information value-added services to reduce pricing pressure from merchants and convince them of the real value of bank-sponsored retail payment networks.”
“The retailer will have a platform to deliver tailored promotions
at the POS.”
“The promotion or message can be delivered via a POS receipt.”
He has obviously been filling
up somewhere else.
----------------------------
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1st visit
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2nd visit
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3rd visit
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4th visit
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Card receipts don’t have to be boring.
London Apr 2008
“The profit margin for solving the merchants’ commerce problems and delivering new customers and/or closed sales is two to three times that of the payments transaction fee.”
“Data shows merchants will pay 7-9% for delivery of a sale vs. 2% for merely processing the payment.”
FREE PAYMENT PROCESSING !
“For every $1 you spend on AdWords each month, you can process $10 in sales the following month for free.”