The PR machine pumps out stories daily about all kinds of innovation in the payments world. We hear new news and new terminology about digital wallets and mobile payments acceptance. Yet the names of the companies promoting all of this innovation are not the names of the original payments innovators; they are not banks or card networks, but companies like PayPal, Square, and Google -- companies that did not exist when Visa and MasterCard were launched in the 1960s. Can banks get on board before the opportunity slips away?
You are here
Global Payments’ August announcement of its acquisition of integrated payment provider (IPP) Accelerated Payments was welcome news for this analyst; it brings to bear the value that an integrated payment provider can bring to the healthcare table. The healthcare industry is moving forward, linking healthcare transaction data to the payment transaction and ultimately to the electronic health/medical record (EHR/EMR). Accelerated Payments and other IPPs specialize in moving data from point A to point B (e.g., the point of sale to card networks) where others cannot. Accelerated Payments has a significant scope of value-added reseller integrations, but the release went out of its way to cite medical, dental, and pharmaceutical as verticals covered by the acquired entity.
Apple revolutionized the online experience with its iPad tablet and the launch of its App Store. Apple consumers can download all kinds of neat apps that do just about anything, and tech-savvy individuals can showcase their app creations to a wide audience -- at times, even for a profit. Bank technology tends to lag the online retail world, but it seems as though financial institution technology providers are beginning to catch up to the concept of the app store.
At the risk of sounding repetitive, I need to announce the death of another concept to which many misguided payments organizations still cling: If you are a card issuer or acquirer/processor with an NFC strategy, you can now drop that strategy in the shredder. It’s hosed.
Over the past decade, reputational risk has grown alongside the ability to quickly spread information -- both positive and negative -- across the media and the world at large. Thanks to social media, individuals, once powerless to do much about perceived wrongs, can now voice their comments, big or small, true or false, about how they have been treated in almost every facet of their lives. Corporate America must now realize that the angry consumer is no longer left at home complaining to a spouse or parent about poor treatment received.