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Continues to decline...

I believe that this will be one of those generational shift issues, and at a point in the near-term even the traditional bankers enamoured with paper cheques will recognize it is just costing the business money for a increasingly irrelevant demographic. 

Brilliant move. Congrats to Giles for showing this level of commitment and transparency...

This is not entirely new ;)

http://news.bbc.co.uk/2/hi/technology/3697940.stm 

FinExtra member,

There is a coming divide between the EU and US potentially here. While there is anti-trust regs in the US, the fact that the largest banks have so willingly co-opted Apple in their NFC solution set probably means that there is not going to be that perception at any stage in the US.

Obviously Visa and Mastercard will move towards tokenization to reduce fraud, and so there is an inexorable push towards mobile payments that will happen globally, and interchange really isn't a factor in moving towards that for either banks, merchants or the card networks - it's all about reducing risk. What we know is that the 16 digit card number is no longer defensible as an artifact from a security perspective, so moving away from that to tokens is absolutely required.

So the question is, if not Apple and/or Google Wallet, then who? It looks like further fragmentation until EU banks and Visa/Mastercard get traction on the tokenization/HCE standard.

We need this - it is largely unavoidable if we want to protect 'cardholders' from fraud moving forward. This is not an Apple Pay versus Interchange argument...

BK 

The headline should more correctly read "US Banks pay high price for being slow on EMV & Mobile Payments and having to outsource to Apple"

The UK is handling this transition smartly and as needed. My concern is with the US market which is much more over-branched than the UK. I think it will come to a Borders/Blockbuster moment for more than a few banks in the US who haven't seen this coming and prepared adequately. 

Ah, it must be nice to live in the 1950s...

This is, frankly, ridiculous...

@Jim,

I was with Wincor Nixdorf last week in Istanbul and can reply that your last statement on ATM demand is simply not true.

BK 

Again, for those of you struggling to understand this, you are not alone. Read the following post on the "Venmo Line" identified in some recent millennials payments behavior research. It is a dramatic and purposeful shift away from cash - http://qz.com/277509/read-what-happens-when-a-bunch-of-over-30s-find-out-how-millennials-handle-their-money/

It is clear that millennials don't use cash and cheques the same way as their parents. You can hope all you want that they'll still use cash and cheques, but they just wont

BK