Card present goes Ecommerce

Nice article Daniel.

Also makes you think about those statistics about fraud on CNP transactions - the shift to convenience like the examples given, meaning more CNP and thus higher total volumes of fraud.

The big issue in payments is cost of processing for businesses, and adding value. There are no incentives for businesses really to start embracing these types of solutions, especially as in many cases cost the busienss more than the good old chip and pin scenarieo.

Wallets like v.me and MasterPass do nothing for the consumer really, nor do they do anything for the merchant. Throw in the challenges and complexities of securing card data and things don't look good. Also, the poor old merchant is also the one that is exposed to the risk of these transactions.

I think the future of payments is away from trying to use existing schemes for digital, rather schemes that are more dynamic, flexible and secure in a digital world will change consumer behaviour.

These are good observations and point first to the growing importance of the remote commerce experience, but second to the undoubted trend towards convergent experience. The mobile platform has been the critical enabler of this and the example of Uber shows how the payments part of the transaction benefits most by seemless integration - something becoming increasingly difficult with the card/terminal form factor or as you say "card present" transaction. Increasingly the card will not be physically "present" in transactions, even if, as in your Uber example, the cardholder (or shall we say the customer of payer) most definitely is present (although there is  flexibility for the payer not be present or even the passenger in the cab). To my mind this points, inevitably, to future payment methods where the same basic transaction and underlying process can be used either remotely or in physical proximity and can better support the multi channel innovation already embarked upon by retailers. To me this implies that the focus of retail payments on a card based form factor looks set to change - and not just to the development of a wallet to put your cards in. The real opportunity is to re-engineer the payments process to one which is inherently more secure and flexible than the card model, and one where financial credentials do not need to be surrendered to wallet providers, retailers or PSPs.

This is a great example of consumers using new devices and payment technologies to improve the user experience and convenience.

It does though highlight the need for card processig rules to keep up with current options and practices.

The economics of card acceptance underpin the whole card payments industry. These dictate the costs and who has to pay them. Many stakeholders do not have this specialised knowledge and so are unaware of the cost implications. Changing from Face to Face to Customer Not Present means different rates will apply.

Who will the winners be? The card issuer; merchant acquirer; merchant or consumer? The ones impacted most are likely to be those least aware of the intracies.