Will Retailers Use “Tender Steering” to Control Interchange Fees?


A process called “tender steering” is new to most retailers.  It means that a retailer can provide incentives to customers to use a particular type of card to pay.  This method could give retailers the power to drive interchange rates down by driving customers to some types of cards and away from others. You might … Continue reading Will Retailers Use “Tender Steering” to Control Interchange Fees?

The Key to Amazon’s Mobile Payments Strategy: Know JACC


Last week, Bloomberg.com reported that Amazon.com’s “Amazon Payments” unit is working on a mobile solution based on Near Field Communication (NFC).    But an analysis of the potential business models and revenues strategy of Amazon all but precludes  is as the sole strategy of Amazon.  Here’s why: Although NFC is certainly making the news these days, … Continue reading The Key to Amazon’s Mobile Payments Strategy: Know JACC

Mobile Payments Strategy of Mastercard is Crystallizing


For over two years now, conventional wisdom and industry pundits agreed that the general strategy of MasterCard and Visa would attempt to make mobile payments simply another form factor of a credit or debit account. The tactics that these companies would use to accomplish this strategy, however, had been the subject of extensive speculation and … Continue reading Mobile Payments Strategy of Mastercard is Crystallizing

Combining Payments and Loyalty Programs


The first pictures of the Isis mobile wallet are probably many months away from being released to the public. No, the image on the left is neither from Isis nor endorsed by Isis, but it has merit based on recent public statements from the company. Last week, two executives on the Isis management team discussed … Continue reading Combining Payments and Loyalty Programs

PayPal Rolls Out Micropayments- Is Brick & Mortar Next?


PayPal’s announcement yesterday rolls out micropayments (transactions under $12) for online purchases, and further improves their position for a large stake in the mobile payments arena. But how would they leverage this micropayment capability at a brick-and-mortar store? One possibility is the ‘do-it-yourself’ approach, as shown in the diagram. The multi-billion dollar system that supports … Continue reading PayPal Rolls Out Micropayments- Is Brick & Mortar Next?

Will Mobile Payments Become a Format War?


It is called a “Format War.”  Two or more companies with different products compete for your attention.  Of course, as a consumer, you get to choose the product you want.  If you don’t like it, certainly you are free to switch to another product. However, since companies know this, they can make it incredibly cumbersome … Continue reading Will Mobile Payments Become a Format War?