There’s one bright spot to the payments industry being encased in a massive overly complex, glacially slow bureaucracy, with certification approval times approaching eons. That bright spot is that fixing even one tiny element of the process can have a tremendous impact.Read More
Author: Evan Schuman
In many respects, India’s 9-year-old Aadhaar national ID system is a global model for simplifying payments, banking and payroll operations. It was designed to be a comprehensive database allowing easy access to bank accounts and other payments mechanisms. As a concept, it worked brilliantly.
But according to data from a report from the Centre For Internet and Society, it also serves as a world-class example of security recklessness, with methods so sloppy that they could have exposed sensitive data about almost a quarter of a billion Indian citizens.Read More
Have retailers suddenly started developing backbones, in terms of pushing back on payments companies? On Monday (June 27), Kroger sued Visa about how it was implementing EMV, in much the same way that Walmart and Home Depot have done. This follows Walmart kicking Visa out of Canada and a major German company rejecting PayPal after PayPal apologized and reinstated it. Did somebody spike the NRF water fountains with super-caffeine or something? Or have merchants decided that they can push back on payments giants with little risk of meaningful pain?
EMV rules seems to have been the PIN straw that broke the POS camel’s back, as even Apple Pay has suffered performance degradations following EMV migrations. The big picture arguments about security—that it’s blindingly obvious that PIN is far more secure than signature—are obscured by the reality that this is really a fight about interchange fees. And the EMV argument that the path to PIN must be glacially slow or else American consumers will freak out from the change, despite the fact that most are quite used to PINs from ATMs and debit cards, is frighteningly valid. And here it is in the land of EMV rules that grocery giant Kroger makes it stand.Read More
In the aftermath of the Brexit vote in the U.K., some payments professionals were panicked given the huge number of European Union payments regulations at play. A U.K. that went its own way on payments—just as it did with monetary policy when it stuck with the Pound and never embraced the Euro—could cause confusion and other problems with cross-border transactions.
This issue is critical for payment facilitators for two reasons. First, one of the biggest values offered by PFs is that PFs offer a way for merchants to sidestep payments complexities. With all of this uncertainty throughout the European payments world, confusion could easily make merchants far more open to the idea of bringing in a PF, as a guard against having to deal with a wide range of potentially changing payments rules. Secondly, the other dominant value offered by PFs are services for merchants that go way beyond what is currently offered. Those services include a wide range of offerings, but ways to effortlessly manage cross-border payments in a post-EU payments world would certainly be among them.Read More
On Wednesday (June 22), a German company that had been cut off from payments from PayPal because of German privacy rules lashed back at PayPal. PayPal had backed down, apologized and reinstated the company, but the German firm said it was too angry with PayPal to necessarily return.
This started out as a tale of regulatory disclosures gone wacky and ended up as a story about companies deciding there is only so much payments guff they’ll take before rebelling. That second tale started with Walmart’s payments heresy move, as it stopped accepting Visa in Canada. The beginning of this tale happened last week, when PayPay insisted on information from the file-sharing company, Seafile, that the company couldn’t provide due to German privacy rules.Read More