Is cash on the way out or not? WePay's Week in Payments
Themes from the news and discussion of payments this week include a couple of takes on the future of payments and how different approaches can shape that, especially with the rise of peer-to-peer payment standards. Another focus area is how the areas of fraud and risk are evolving in the world of payments, including new data that shows that ecommerce fraud is declining. Finally there are a couple of viewpoints on the First Data acquisition of CardConnect.
Let’s start with some possible future directions for payments. Multi-Channel Merchant takes a look at how new payment methods are changing ecommerce and in particular notes that digital and improved customer experience are requirements for success.
But changes in payment technologies and the way money movement is handled are much greater than just how payments can be integrated for ecommerce. Tomorrow’s transactions takes a look at where card payments are headed in the wake of European changes (PSD2) and concludes that credit card companies in particular are certain to react but the critical point will be how they react to the changes in Europe.
A much wilder look at the future of payments and transactions comes from Australia, where Mark Pesce argues that a nationwide peer-to-peer payment system modeled after similar systems in Africa is going to completely change how payments are handled for everyone.
On the risk and fraud side of the payments industry, CFO Magazine takes a look at fighting fraud and how to defend the weak spots in your organization. They conclude that fighting fraud is a shifting and complex target and organizations need to find a balance in how they handle risk with respect to payments.
PYMNTS.com has an interview with the CEO of Paysafe about risk and Paysafe’s approach to it. The discuss the wild, bad old days and then the complex present where solutions require putting many pieces together.
Despite the habitual doom and gloom of the fraud and risk aspects of the payments industry, Payments, Cards and Mobile presents results of some research that indicate that ecommerce fraud has actually declined 35% since last year.
The big news of the week is that First Data bought CardConnect, growing its footprint in payment processing even further. The deal was for $750M and Investopedia has some analysis of the deal. At the same time TheStreet argues that despite this acquisition we shouldn’t expect to see any other big deals from First Data any time soon. We shall see.
In an amusing juxtaposition, Payment Facilitator presents arguments both for and against the death of cash in two different pieces. To be fair, the argument is really that cash is slowly dying out, but the contrast is still interesting. On one hand they point to news that QR code payments are being introduced in Singapore. On the other they point out surveys that argue that cash is going to be with us for a very long time to come.