Banks' Retail Payment Operations at a Tipping Point

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ID Number: G00148090

This research is provided for historical perspective;
portions of this document may not reflect current conditions.

10 May 2007

Christophe Uzureau

Merchants are putting pressure on card interchange, consumers have changed their payment requirements, regulators want more transparency, and nonbank payment providers are entering the fray. This calls for a fundamental shift in banks' retail payment operations.

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Table of Contents

Analysis

1.0

Overview

2.0

Focus of Document

3.0

Analysis

3.1

Confusing Consumers to Avoid Commoditization

3.1.1		The Race to Become the Primary Payment Provider Is On
3.1.2		How to Make Product Comparisons Less Meaningful
3.1.3		Time to Plan for Other Instruments
3.1.4		Differentiation Requires Merchant Involvement

3.2

Building the Next Generation of Acquiring Services

3.2.1

What Banks Don't Want to Happen

3.2.2

"A" for "Advisory" — Not Just "Acquiring"

3.2.2.1		Payment Information Value-Added Services
3.2.2.2		How This Works
3.2.2.3		A Better Type of Interaction
3.2.2.4		Distribution of Nonbank Payment Services

3.2.3

Stronger Integration Between Issuing and Acquiring Necessary

4.0

Recommendations

Recommended Reading

List of Figures

	Figure 1.	Consolidation of Transactions — Not Cards

	Figure 2.	United Kingdom: Consumers Increasingly Relying on Comparative Sites for Personal Finance, 2005-2007

	Figure 3.	Cardholders Want Rewards for the Extent of Their Banking Relationships

	Figure 4.	Australia: Acquiring Services Under Pressure

Payment Services
Customer Information Management
Payments
Banking Business Strategies

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Resource Id: 505488