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Payments Is
for FrenemIes and CooPetItIon
The history of alternative payments—the forerunner to mobile payments—is one that the card brands should be very proud of. It consists of entrepreneurs and some veteran payments execs who were sure they could create a modern payments system that was more e cient, faster and certainly more cost-e ective than the existing rails controlled by Visa, Mastercard and friends.
They were wrong and one by one realized it. Surprise, surprise, but they discovered that the billions of dollars invested over dec- ades created a system that couldn’t be replicated easily. Even the retail-led initiative MCX had to shift its initial strategy to sidestep those rails and succumbed to reality by integrating with traditional payment cards.
What we have today is a world where bank-issued cards are the heart of almost every major mobile wallet—interchange fees and all. But will the banks get an even more central role? This question is precisely what we explore in “Will Bank-Backed M-Wallets Win?” (page 30). Banks rank well—generally—in surveys of which entities consumers trust most to handle their money. Can this trust be converted into mobile wallet dominance?
This issue also digs into loyalty and what it can and cannot do (pages 14 and 24). We also pro le some of the Smartest People in Payments and extract (OK steal) some of their best insights (page 4). And what issue would be complete without delving into regulatory oversight? This time it’s a deep-dive into the CFPB and what payments companies can learn from the agency’s recent enforcement actions (page 68).
Happy reading!
Evan Schuman, Interim Editor-in-Chief
P.S. Great News! Loraine DeBonis had a baby boy on Aug. 8 and will be back at Paybefore in mid-October.
volume 9 • fall 2016
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Lindsay Tis
MANAGING DIrECTOr
Lindsay.Tis.us@knect365.com
Loraine DeBonis
EDITOr-IN-CHIEF
ldebonis@paybefore.com
Bill Grabarek
SENIOr EDITOr
bgrabarek@paybefore.com
Thad Rueter
SENIOr EDITOr
trueter@paybefore.com
Adam Perrotta
ASSOCIATE EDITOr
aperrotta@paybefore.com
Robin Chalmers Mason
PrODuCTION EDITOr
robin@paybefore.com
Doris Kwok
MArKETING ASSISTANT
dkwok@paybefore.com
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