Page 109 - Pay Magazine s2014

volume 8 • spring 2015
for a solution that didn’t have
to be reinvented for every new application. In his case, the new application was the daily refresh of Enigma settings. For us, it was creating a system that could easily adapt, enabling clients to migrate seamlessly between prepaid, debit and credit.
The flexibility enables us to handle the diversity we do today—open- and closed-loop prepaid, debit, credit and commercial credit. Starting with a white canvas from
a technological perspective was a strategic advantage that has built our reputation as a quick-to-market innovator. And, our scale has come through our innovation.
Paybefore: E-payments have come a long way in 15 years. What’s the processor’s role today?
CW: Processors do all the heavy lifting because our systems do all the work. If something goes wrong, the processor gets called.
Paybefore: Issuers might have something to say about that.
CW: Banks are the front line, of course, and they get the regulators at the door. But the responsibility of banks is oversight and making sure global account balances are settled daily. For everything else, banks depend on their processors. So, ok, they’ll shoot the banks first; then the processors.
Paybefore: What are the most significant challenges you face?
CW: First, making constant investment—in hardware, software, people ... You can’t be a successful processor and remain static.
Second, deep knowledge in many areas. A processor must understand the business needs of its clients, the type of payment, the verticals and more. We have to be good at cus- tomer care, innovation, account man- agement, finance, authorization and settlement ... it goes on and on.
And third, security, because the threats are always changing and getting bigger. Security has to be the bedrock of any processor. Put them in any order. They’re all extremely significant. And, if you gave me a fourth, it would be regulation. Like security, it’s a moving target.
Paybefore: What are you finding most interesting in this period of payments evolution?
CW: It’s got to be convergence, which, to me, means meshing the consumer’s retail and payment ex- perience. There are a lot of conver- gence questions going on in the value chain, but not many answers —yet. But, ultimately, convergence will have a significant effect on what we today consider the traditional e- payments value chain. Looking ahead, it’s hard to see the distinc- tion between merchants and issuers.
Paybefore: Really?
CW: Sure, think about the possibili- ties for a consumer’s experience
in-store. It’s varied and ranges
from a showroom-type experience (looking at physical items for later online purchase) in a department store to buying food in a grocery store and being presented with an offer related to the transaction— like, a merchant or product offer, or a credit to pay for the items. Where are the dollars backing that trans- action? With the merchant or the issuer? This line is blurred even fur- ther in the mobile context, where we could be using our own phones as a POS device and payment vehicle.
Paybefore: So, is mobile a form factor or revolution?
CW: Apple getting into the game is ground shifting—not because the consumer experience changes dramatically, but because Apple was the missing link in mass mar- ket adoption. But it goes further. Is there a future in which I don’t have a PC or a Web-browsing experi- ence? Will apps take over? I don’t think we’re far from that right now.
Paybefore: If you were starting from scratch today, what would you do differently?
CW: To start, I’d definitely do it all over. But, based on what I’ve learned, I’d be more active in controlling our destiny—or, I’d try at least. For example, early on, I would’ve been even more active in program management vs. relying on others. The business models of the successful program managers are attractive. If I were starting all over, I’d tap into that.
paybefore.com 107